Income Statement

Income Statement

Retrieve real-time income 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 real-time income 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 real-time income 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. Revenue trajectory: Calculate dollar and percentage changes year-over-year 2. Net income trends: Track profitability in absolute terms 3. EPS progression: Note earnings per share expansion or contraction 4. Margin calculation: Compute Net Income / Revenue for net margin 5. Scale context: Compare figures to industry peers

Metrics Reference

Analysis Tips

Revenue Scale

• Use to compare company size across industry
• Track absolute dollar growth, not just percentages
• Larger base requires more absolute growth to maintain % growth

Net Income Quality

• Compare Net Income to Operating Income for non-operating items
• Check for one-time gains/losses distorting figures
• Look for consistent growth trajectory

EPS Analysis

• EPS can grow faster than Net Income due to buybacks
• Compare to analyst estimates and guidance
• Check shares outstanding for context

Margin Calculation

Calculate from the data:

Net Margin = Net Income / Revenue × 100

Example: $112B / $416B = 26.9% net margin

Period Comparisons

• FY for annual strategic view
• Q for seasonal patterns and recent trends
• Compare same periods (Q1 vs Q1) for seasonality

Follow-up Queries

Based on results, suggest deeper analysis:

• "What factors contributed to the revenue growth in [YEAR]?"
• "How does [COMPANY]'s [YEAR] net margin compare to industry peers?"
• "What are the key drivers of the EPS expansion over the [N]-year period?"
• "Retrieve quarterly income statement data for [TICKER] to see seasonal patterns"

Income Statement Skill

Retrieve real-time income statement data including Revenue, Net Income, and EPS Diluted for public companies using the Octagon MCP server.

Installation

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

<details> <summary>bun</summary>

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

</details>

<details> <summary>pnpm</summary>

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

</details>

What This Skill Does

This skill retrieves comprehensive income statement data:

• Revenue and cost of revenue
• Gross profit and operating income
• Net income and EPS (basic and diluted)
• EBITDA and operating expenses
• Historical data across fiscal periods

Example Usage

Retrieve real-time income statement data for AAPL

---

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 Income Statement Results

Reading the Output

Values are in absolute USD (or local currency) for the fiscal period.

Key Calculations

Year-over-Year Change

Revenue Growth = (Current Year - Prior Year) / Prior Year × 100

Example: ($416B - $391B) / $391B = 6.4% growth

Net Margin

Net Margin = Net Income / Revenue × 100

Example: $112B / $416B = 26.9%

Earnings Yield

Earnings Yield = EPS / Stock Price × 100

Inverse of P/E ratio

Key Patterns

Revenue Milestones

Track crossing key thresholds:

• $100B, $250B, $500B revenue
• Industry leadership benchmarks
• Geographic expansion impact

Profitability Trends

Watch for:

• Consistent Net Income growth
• Margin expansion/compression
• EPS trajectory

Scale Economics

Larger companies:

• Need more absolute dollars for same % growth
• Often have margin advantages
• Face law of large numbers

Comparative Analysis

Peer Comparison

Use absolute figures to compare:

• Revenue scale vs competitors
• Net income levels
• EPS benchmarking

Industry Context

Position within industry:

• Market share estimation (Revenue / Industry Revenue)
• Profitability ranking
• Growth rate comparison

Common Use Cases

Valuation Inputs

Income statement data feeds:

• P/E ratio = Price / EPS
• P/S ratio = Market Cap / Revenue
• Enterprise value multiples

Trend Analysis

Multi-year data shows:

• Growth trajectory
• Margin trends
• Earnings consistency

Forecasting Base

Historical figures for:

• Growth rate assumptions
• Margin projections
• DCF model inputs

Follow-up Analysis

Retrieve quarterly income statement data for AAPL to see seasonal patterns

Compare AAPL's revenue and net income to MSFT and GOOGL for FY 2025

What is AAPL's gross margin and operating margin trend over 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