---
name: "Cash flow growth"
repo: https://github.com/octagonai/skills
source: https://github.com/octagonai/skills/blob/HEAD/skills/cash-flow-growth/SKILL.md
license: "MIT"
install: "npx skills add octagonai/skills --skill cash-flow-growth"
page: https://100xlab.com/resources/agent-skills/octagonai-skills--cash-flow-growth--alu1q1
---

# Cash Flow Growth

Retrieve and analyze year-over-year growth in cash flow metrics for public companies using Octagon MCP.

## Prerequisites

Ensure Octagon MCP is configured in your AI agent (Cursor, Claude Desktop, Windsurf, etc.). See [references/mcp-setup.md](references/mcp-setup.md) for installation instructions.

## Query Format

```
Retrieve cash-flow growth metrics for <TICKER>, limited to <N> records and filtered by period <FY|Q>.
```

**MCP Call:**

```json
{
  "server": "octagon-mcp",
  "toolName": "octagon-agent",
  "arguments": {
    "prompt": "Retrieve cash-flow growth metrics for AAPL, limited to 5 records and filtered by period FY"
  }
}
```

## Output Format

The agent returns a table with YoY growth percentages:

| Fiscal Year | Operating Cash Flow Growth (%) | Free Cash Flow Growth (%) | Net Cash Flow Growth (%) |
|-------------|-------------------------------|--------------------------|-------------------------|
| 2025 | -5.73 | -9.23 | 8.55 |
| 2024 | 6.98 | 9.26 | -1.14 |
| 2023 | -9.50 | -10.64 | 1.53 |
| 2022 | 17.41 | 19.89 | -1.84 |
| 2021 | 28.96 | 26.70 | 0.63 |

**Data Source:** octagon-financials-agent

## Key Observations Pattern

After receiving data, generate observations:

1. **Operating cash flow trends**: Core business cash generation ability
2. **Free cash flow health**: Capital available for dividends, buybacks, M&A
3. **Net cash flow direction**: Overall liquidity position changes
4. **Volatility assessment**: Consistency of cash generation
5. **Historical context**: Multi-year patterns and inflection points

## Metrics Reference

| Metric | Definition |
|--------|------------|
| Operating Cash Flow Growth | YoY change in cash from core business operations |
| Free Cash Flow Growth | YoY change in OCF minus Capital Expenditures |
| Net Cash Flow Growth | YoY change in total cash position (OCF + Investing + Financing) |

## Analysis Tips

### Strong Cash Generation
When Operating Cash Flow Growth > Revenue Growth:
- Efficient working capital management
- Strong collections and payables optimization
- Quality earnings (cash backing profits)

### Free Cash Flow Divergence
When FCF Growth differs significantly from OCF Growth:
- Capex changes driving the difference
- Growth investments (negative) or harvesting (positive)
- Check capex as % of revenue trend

### Net Cash Flow Volatility
Net Cash Flow often volatile due to:
- Large debt issuances or repayments
- Share buyback programs
- Dividend policy changes
- M&A activity

### Working Capital Impact
Significant OCF swings often driven by:
- Inventory build/drawdown
- Receivables collection timing
- Payables management
- Deferred revenue changes

### Quality of Earnings Check
Compare to income statement:
- OCF should track or exceed Net Income over time
- Persistent OCF < Net Income signals earnings quality concerns

## Follow-up Queries

Based on results, suggest deeper analysis:

- "What drove the operating cash flow decline in [YEAR]?"
- "Break down [COMPANY]'s working capital changes for the last 3 years"
- "Compare [COMPANY]'s free cash flow yield to industry peers"
- "Analyze [COMPANY]'s capital expenditure trends and guidance"

---

## Supporting file: marketplace.json

```json
{
  "name": "cash-flow-growth",
  "description": "Retrieve year-over-year growth in cash flow metrics including Operating Cash Flow, Free Cash Flow, and Net Cash Flow for public companies.",
  "version": "1.0.0",
  "author": "OctagonAI",
  "tags": ["octagon", "cash-flow", "yoy-growth", "free-cash-flow", "operating-cash-flow", "financial-analysis", "mcp"],
  "repository": "https://github.com/OctagonAI/skills"
}
```

---

## Supporting file: README.md

# Cash Flow Growth Skill

Retrieve year-over-year growth in Operating Cash Flow, Free Cash Flow, and Net Cash Flow for public companies using the Octagon MCP server.

## Installation

```bash
npx skills add OctagonAI/skills --skill cash-flow-growth
```

<details>
<summary>bun</summary>

```bash
bunx skills add OctagonAI/skills --skill cash-flow-growth
```

</details>

<details>
<summary>pnpm</summary>

```bash
pnpm dlx skills add OctagonAI/skills --skill cash-flow-growth
```

</details>

## What This Skill Does

This skill retrieves cash flow growth metrics:

- Operating cash flow growth YoY
- Free cash flow growth trends
- Net cash flow changes
- Cash generation improvements

## Example Usage

```
Retrieve YoY growth in Operating Cash Flow and Free Cash Flow for META
```

---

## Octagon MCP Setup

This skill requires the [Octagon MCP](https://github.com/OctagonAI/octagon-mcp) server to be configured in your AI agent.

### Get Your API Key

1. Sign up at [Octagon](https://app.octagonai.co/signup/?redirectToAfterSignup=https://app.octagonai.co/api-keys)
2. Navigate to **API Keys** from the left menu
3. Generate and save your API key

### Configure Cursor

1. Open Cursor Settings → **Features > MCP Servers**
2. Click **+ Add New MCP Server**
3. Enter:
   - **Name**: `octagon-mcp`
   - **Type**: `command`
   - **Command**: `env OCTAGON_API_KEY=<your-api-key> npx -y octagon-mcp`

**Windows**: `cmd /c "set OCTAGON_API_KEY=<your-api-key> && npx -y octagon-mcp"`

### Configure Claude Desktop

Add to `claude_desktop_config.json`:

```json
{
  "mcpServers": {
    "octagon-mcp-server": {
      "command": "npx",
      "args": ["-y", "octagon-mcp@latest"],
      "env": {
        "OCTAGON_API_KEY": "YOUR_API_KEY_HERE"
      }
    }
  }
}
```

### Documentation

- [Octagon Docs](https://docs.octagonagents.com)
- [Octagon MCP GitHub](https://github.com/OctagonAI/octagon-mcp)

---

## Supporting file: references/interpreting-results.md

# Interpreting Cash Flow Growth

## Reading the Output

| Fiscal Year | Operating Cash Flow Growth (%) | Free Cash Flow Growth (%) | Net Cash Flow Growth (%) |
|-------------|-------------------------------|--------------------------|-------------------------|
| 2025 | -5.73 | -9.23 | 8.55 |

**Positive values** = Growth vs prior year
**Negative values** = Decline vs prior year

## Key Patterns

### Cash Flow Quality
When Operating Cash Flow Growth > Net Income Growth:
- Strong earnings quality
- Efficient working capital management
- Cash backing reported profits

### Free Cash Flow Strength
When Free Cash Flow Growth > Operating Cash Flow Growth:
- Declining capex intensity
- Transitioning from growth to harvest phase
- More cash available for shareholders

### Investment Mode
When Free Cash Flow Growth < Operating Cash Flow Growth:
- Increasing capital expenditures
- Investing in growth capacity
- Check if investments generating returns

### Financing Activity Impact
When Net Cash Flow differs significantly from OCF:
- Debt issuance/repayment activity
- Share buyback programs
- Dividend payments
- M&A transactions

## Cash Flow Health Indicators

### Strong Position
- Consistent positive OCF growth
- FCF growth matching or exceeding OCF
- Stable net cash flow trajectory

### Warning Signs
- Multiple years of OCF decline
- FCF persistently negative
- High volatility in all metrics
- OCF declining while Net Income grows (quality concern)

## Connecting the Three Statements

Cash flow connects to:

1. **Income Statement**: Net Income is starting point for OCF
2. **Balance Sheet**: Cash changes flow to balance sheet
3. **Working Capital**: Receivables, inventory, payables impact OCF

## Common Drivers of Cash Flow Changes

### Operating Cash Flow
- Revenue growth/decline
- Working capital efficiency
- Non-cash expense changes (D&A)
- Deferred revenue timing

### Free Cash Flow
- All OCF drivers plus
- Capital expenditure decisions
- Maintenance vs growth capex mix

### Net Cash Flow
- All FCF drivers plus
- Debt issuance/repayment
- Equity issuance/buybacks
- Dividend payments

## Follow-up Analysis

```
Break down AAPL's working capital changes for the last 5 fiscal years
```

```
Compare AAPL's free cash flow conversion ratio to MSFT and GOOGL
```

```
Analyze AAPL's capital allocation between buybacks, dividends, and reinvestment
```

---

## Supporting file: references/mcp-setup.md

# Octagon MCP Setup for Cursor

## Prerequisites

Install Node.js (includes npm and npx):

**macOS:**
```bash
brew install node
```

**Windows:**
Download from https://nodejs.org/ (LTS version)

Verify:
```bash
node -v && npm -v && npx -v
```

## Get Octagon API Key

1. Sign up at https://app.octagonai.co/signup/?redirectToAfterSignup=https://app.octagonai.co/api-keys
2. Navigate to **API Keys** in left menu
3. Generate and save your key

## Configure Cursor

1. Open Cursor Settings
2. Go to **Features > MCP Servers**
3. Click **+ Add New MCP Server**
4. Enter:
   - **Name:** `octagon-mcp`
   - **Type:** `command`
   - **Command:** `env OCTAGON_API_KEY=<your-api-key> npx -y octagon-mcp`

**Windows:**
```
cmd /c "set OCTAGON_API_KEY=<your-api-key> && npx -y octagon-mcp"
```

## Verify

Refresh MCP server list. Test with:
```
Retrieve the current stock price for AAPL
```

## Documentation

https://docs.octagonagents.com