Balance Sheet

Balance Sheet

Retrieve detailed balance sheet statement data 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 detailed balance sheet statement data for <TICKER>, limited to <N> records and filtered by period <FY|Q>.

MCP Call:

{
  "server": "octagon-mcp",
  "toolName": "octagon-agent",
  "arguments": {
    "prompt": "Retrieve detailed balance sheet statement data for AAPL, limited to 5 records and filtered by period FY"
  }
}

Output Format

The agent returns a table with absolute financial figures:

Data Source: octagon-financials-agent

Key Observations Pattern

After receiving data, generate observations:

1. Asset base changes: Track total assets trajectory over time 2. Asset composition: Analyze current vs non-current asset mix 3. Equity trends: Monitor shareholders' equity changes 4. Leverage position: Track net debt levels and direction 5. Capital structure: Compare liabilities to equity ratios

Metrics Reference

Analysis Tips

Asset Composition

• Current Assets: Liquidity and working capital
• Non-Current Assets: Long-term investments and capacity
• Shift toward current = more liquid
• Shift toward non-current = more invested

Capital Structure Ratios

Calculate from the data:

Debt-to-Equity = Total Liabilities / Total Equity
Equity Ratio = Total Equity / Total Assets

Net Debt Analysis

• Declining Net Debt = deleveraging
• Negative Net Debt = net cash position
• Compare to EBITDA for leverage context

Equity Trends

Rising equity from:

• Retained earnings (profitable operations)
• Stock issuance
• Other comprehensive income

Declining equity from:

• Net losses
• Share buybacks
• Dividends exceeding earnings

Working Capital

Working Capital = Current Assets - Current Liabilities

Positive = can meet short-term obligations

Follow-up Queries

Based on results, suggest deeper analysis:

• "What factors contributed to the decline in total assets in [YEAR] compared to [PRIOR YEAR]?"
• "How has [COMPANY]'s capital allocation strategy evolved between [YEAR1] and [YEAR2]?"
• "What specific components of non-current assets grew between [YEAR1] and [YEAR2]?"
• "Compare [COMPANY]'s leverage ratios to [PEER1] and [PEER2]"

Balance Sheet Skill

Retrieve detailed balance sheet data including Assets, Liabilities, Equity, and Net Debt for public companies using the Octagon MCP server.

Installation

npx skills add OctagonAI/skills --skill balance-sheet

<details> <summary>bun</summary>

bunx skills add OctagonAI/skills --skill balance-sheet

</details>

<details> <summary>pnpm</summary>

pnpm dlx skills add OctagonAI/skills --skill balance-sheet

</details>

What This Skill Does

This skill retrieves comprehensive balance sheet data:

• Total assets and current assets
• Total liabilities and current liabilities
• Shareholders' equity
• Cash and cash equivalents
• Net debt and working capital

Example Usage

Retrieve detailed balance sheet data for MSFT

---

Octagon MCP Setup

This skill requires the Octagon MCP server to be configured in your AI agent.

Get Your API Key

1. Sign up at Octagon 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
• Octagon MCP GitHub

Interpreting Balance Sheet Results

Reading the Output

Values are in absolute USD (millions) at fiscal period end.

Key Calculations

Debt-to-Equity Ratio

D/E = Total Liabilities / Total Equity

Example: $285.5B / $73.7B = 3.87x

Equity Ratio

Equity Ratio = Total Equity / Total Assets × 100

Example: $73.7B / $359.2B = 20.5%

Current Ratio (if current liabilities available)

Current Ratio = Current Assets / Current Liabilities

Above 1.0 = can cover short-term obligations

Net Debt to Equity

Net Debt / Equity = Net Debt / Total Equity

Example: $89.7B / $73.7B = 1.22x

Key Patterns

Strengthening Balance Sheet

• Total Equity increasing
• Net Debt decreasing
• Debt-to-Equity ratio declining

Leveraging Up

• Liabilities growing faster than assets
• Net Debt increasing
• Equity ratio declining

Asset-Light Model

• Lower non-current assets relative to revenue
• Higher asset turnover
• Less capital intensive

Cash-Rich Position

• Negative Net Debt (cash exceeds debt)
• Strong liquidity
• Flexibility for M&A, buybacks

Component Analysis

Current Assets

Includes:

• Cash and equivalents
• Short-term investments
• Accounts receivable
• Inventory

Non-Current Assets

Includes:

• Property, plant & equipment
• Intangible assets / goodwill
• Long-term investments
• Deferred tax assets

Understanding Net Debt

Net Debt = Total Debt - Cash & Equivalents

• Positive = net debtor
• Negative = net cash position

Comparative Analysis

Peer Benchmarking

Compare:

• Debt-to-Equity vs industry average
• Equity ratio vs competitors
• Net Debt / EBITDA for leverage

Historical Trend

Track over time:

• Is leverage increasing or decreasing?
• Is equity growing from operations?
• Is asset base expanding efficiently?

Follow-up Analysis

Retrieve AAPL's debt maturity schedule and interest coverage ratio

Compare AAPL's balance sheet structure to MSFT and GOOGL

What is AAPL's current ratio and quick ratio for the last 5 years?

Octagon MCP Setup

Get Your Octagon API Key

1. Sign up for a free account at Octagon 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/ 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