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 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