Income statement growth

Income Statement Growth#

Retrieve and analyze year-over-year growth in key income statement items 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 (opens in a new tab) for installation instructions.

Query Format#

Retrieve year-over-year growth in key income-statement items for <TICKER>, limited to <N> records and filtered by period <FY|Q>.

MCP Call:

{
  "server": "octagon-mcp",
  "toolName": "octagon-agent",
  "arguments": {
    "prompt": "Retrieve year-over-year growth in key income-statement items for AAPL, limited to 5 records and filtered by period FY"
  }
}

Output Format#

The agent returns a table with YoY growth percentages:

Data Source: octagon-financials-agent

Key Observations Pattern#

After receiving data, generate observations:

1. Growth acceleration: Identify years with strong growth across all metrics
2. Margin divergence: Note when Net Income growth differs significantly from Revenue growth
3. EPS vs Net Income: Compare EPS growth to Net Income growth (share buybacks impact)
4. Contraction periods: Flag years with negative growth and potential causes

Follow-up Queries#

Based on results, suggest deeper analysis:

• "What factors contributed to the significant net income growth in [YEAR] despite moderate revenue growth?"
• "Why did net income decline in [YEAR] despite positive operating income growth?"
• "How did [COMPANY]'s cost management strategies impact gross profit trends?"

Metrics Reference#

Analysis Tips#

1. EPS outpacing Net Income: Indicates share buyback activity reducing share count
2. Gross Profit > Revenue growth: Margin expansion from pricing power or cost efficiency
3. Operating Income > Gross Profit growth: Operating leverage from fixed cost management
4. Net Income volatility: Often driven by one-time items, taxes, or interest expenses

Supporting file: marketplace.json#

{
  "name": "income-statement-growth",
  "description": "Retrieve year-over-year growth in income statement items including Revenue, Gross Profit, Operating Income, Net Income, and EPS Diluted for public companies.",
  "version": "1.0.0",
  "author": "OctagonAI",
  "tags": ["octagon", "income-statement", "yoy-growth", "revenue", "eps", "financial-analysis", "mcp"],
  "repository": "https://github.com/OctagonAI/skills"
}

Supporting file: README.md#

Income Statement Growth Skill#

Retrieve year-over-year growth in Revenue, Gross Profit, Operating Income, Net Income, and EPS Diluted for public companies using the Octagon MCP server.

Installation#

npx skills add OctagonAI/skills --skill income-statement-growth

bunx skills add OctagonAI/skills --skill income-statement-growth

pnpm dlx skills add OctagonAI/skills --skill income-statement-growth

What This Skill Does#

This skill retrieves income statement growth metrics:

• Revenue growth percentage YoY
• Gross profit growth trends
• Operating income growth
• Net income growth rates
• EPS diluted growth

Example Usage#

Retrieve YoY growth in Revenue, Gross Profit, and Net Income for AMZN

Octagon MCP Setup#

This skill requires the Octagon MCP (opens in a new tab) server to be configured in your AI agent.

Get Your API Key#

1. Sign up at Octagon (opens in a new tab)
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:

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

Documentation#

• Octagon Docs (opens in a new tab)
• Octagon MCP GitHub (opens in a new tab)

Supporting file: references/interpreting-results.md#

Interpreting Income Statement Growth#

Reading the Output#

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

Key Patterns#

Operating Leverage#

When Operating Income Growth > Revenue Growth:

• Fixed costs spread over larger revenue base
• Scalable business model

Margin Expansion#

When Gross Profit Growth > Revenue Growth:

• Pricing power or cost efficiencies
• Improved product mix

Share Buyback Signal#

When EPS Growth > Net Income Growth:

• Company reducing share count
• Capital return to shareholders

Profitability Acceleration#

When Net Income Growth > Operating Income Growth > Revenue Growth:

• All metrics improving
• Strong execution

Red Flags#

1. Revenue declining, EPS rising: Unsustainable financial engineering
2. Gross Profit lagging Revenue: Margin compression
3. Operating Income negative while others positive: Cost control issues
4. High volatility year-over-year: Inconsistent execution

Generating Observations#

After receiving data, note:

1. Which year showed strongest overall performance?
2. Are there divergences between top-line and bottom-line growth?
3. Is EPS growth driven by earnings or buybacks?
4. Any multi-year trends (acceleration/deceleration)?

Follow-up Analysis#

Use these queries to dig deeper:

Analyze AAPL's latest earnings call and extract commentary on margin trends

Compare year-over-year growth for AAPL vs MSFT vs GOOGL for the last 3 fiscal years

Extract key risk factors from AAPL's most recent 10-K filing

Supporting file: references/mcp-setup.md#

Octagon MCP Setup#

Get Your Octagon API Key#

1. Sign up for a free account at Octagon (opens in a new tab)
2. After logging in, from left menu, navigate to API Keys
3. Generate a new API key
4. Save the key securely - you'll need it for configuration

Prerequisites#

Before installing or running Octagon MCP, you need to have npx (which comes with Node.js and npm) installed on your system.

Mac (macOS)#

1. Install Homebrew (if you don't have it):

   /bin/bash -c "$(curl -fsSL https://raw.githubusercontent.com/Homebrew/install/HEAD/install.sh)"

2. Install Node.js (includes npm and npx):

   brew install node

3. Verify installation:

   node -v
   npm -v
   npx -v

Windows#

1. Download the Node.js installer:
   • Go to https://nodejs.org/ (opens in a new tab) and download the LTS version for Windows.
2. Run the installer and follow the prompts. This will install Node.js, npm, and npx.
3. Verify installation: Open Command Prompt and run:

   node -v
   npm -v
   npx -v

If you see version numbers for all three, you are ready to proceed.

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

Replace <your-api-key> with your actual Octagon API key.

Windows users: Use this command format instead:

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

After adding, refresh the MCP server list to see the new tools. The Composer Agent will automatically use Octagon MCP when appropriate. Access the Composer via Command+L (Mac), select "Agent" next to the submit button, and enter your query.

Configure Claude Desktop#

1. Open Claude Desktop
2. Go to Settings > Developer > Edit Config
3. Add the following to your claude_desktop_config.json:

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

4. Restart Claude for the changes to take effect

Configure Windsurf#

Add this to your ./codeium/windsurf/model_config.json:

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

Verify Setup#

1. Refresh the MCP server list
2. The octagon-agent tool should appear in available tools
3. Test with a simple query:

   Retrieve the current stock price for AAPL

Available Tools#

Troubleshooting#

API Key Issues: Verify the key is correctly set in the command string with no extra spaces.

Connection Issues: Ensure you have internet connectivity and the Octagon API is accessible.

Rate Limiting: Reduce query frequency if encountering rate limit errors.

Documentation#

Full documentation: https://docs.octagonagents.com (opens in a new tab)