---
name: "Income statement growth"
repo: https://github.com/octagonai/skills
source: https://github.com/octagonai/skills/blob/HEAD/skills/income-statement-growth/SKILL.md
license: "MIT"
install: "npx skills add octagonai/skills --skill income-statement-growth"
page: https://100xlab.com/resources/agent-skills/octagonai-skills--income-statement-growth--18bk2ng
---

# 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](references/mcp-setup.md) 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:**

```json
{
  "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:

| Fiscal Year | Revenue Growth (%) | Gross Profit Growth (%) | Operating Income Growth (%) | Net Income Growth (%) | EPS Diluted Growth (%) |
|-------------|-------------------|------------------------|----------------------------|----------------------|------------------------|
| 2025 | 6.43 | 8.04 | 7.98 | 19.50 | 22.70 |
| 2024 | 2.02 | 6.82 | 7.80 | -3.36 | -0.82 |
| 2023 | -2.80 | -0.96 | -4.30 | -2.81 | 0.33 |
| 2022 | 7.79 | 11.74 | 9.63 | 5.41 | 8.91 |

**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

| Metric | Definition |
|--------|------------|
| Revenue Growth | YoY change in total sales |
| Gross Profit Growth | YoY change in Revenue minus Cost of Goods Sold |
| Operating Income Growth | YoY change in income from core operations |
| Net Income Growth | YoY change in bottom-line profit after all expenses |
| EPS Diluted Growth | YoY change in earnings per share (fully diluted) |

## 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

```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

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

<details>
<summary>bun</summary>

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

</details>

<details>
<summary>pnpm</summary>

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

</details>

## 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](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 Income Statement Growth

## Reading the Output

| Fiscal Year | Revenue Growth (%) | Gross Profit Growth (%) | Operating Income Growth (%) | Net Income Growth (%) | EPS Diluted Growth (%) |
|-------------|-------------------|------------------------|----------------------------|----------------------|------------------------|
| 2025 | 6.43 | 8.04 | 7.98 | 19.50 | 22.70 |

**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](https://app.octagonai.co/signup/?redirectToAfterSignup=https://app.octagonai.co/api-keys)
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):
   ```bash
   /bin/bash -c "$(curl -fsSL https://raw.githubusercontent.com/Homebrew/install/HEAD/install.sh)"
   ```
2. **Install Node.js (includes npm and npx):**
   ```bash
   brew install node
   ```

3. **Verify installation:**
   ```bash
   node -v
   npm -v
   npx -v
   ```

### Windows

1. **Download the Node.js installer:**
   - Go to [https://nodejs.org/](https://nodejs.org/) 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:
   ```cmd
   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`:

```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`:

```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

| Tool | Description |
|------|-------------|
| `octagon-agent` | Comprehensive market intelligence (SEC filings, earnings, financials, stock data) |
| `octagon-scraper-agent` | Extract structured data from financial websites |
| `octagon-deep-research-agent` | Aggregate research from multiple sources |

## 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](https://docs.octagonagents.com)