Sec Annual Comparison

SEC Annual Comparison

Compare key metrics and risk factors between current and previous year 10-K filings for public companies using the Octagon MCP server.

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.

Workflow

1. Identify Analysis Parameters

Determine the following before querying:

• Ticker: Stock symbol (e.g., AAPL, MSFT, GOOGL)
• Years (optional): Specific fiscal years to compare
• Focus Areas (optional): Financials, risks, segments, strategy

2. Execute Query via Octagon MCP

Use the octagon-agent tool with a natural language prompt:

Compare key metrics and risk factors between 's current and previous year 10-K filings.

MCP Call Format:

{
  "server": "octagon-mcp",
  "toolName": "octagon-agent",
  "arguments": {
    "prompt": "Compare key metrics and risk factors between CRM's current and previous year 10-K filings."
  }
}

3. Expected Output

The agent returns structured year-over-year comparison including:

Financial Metrics:

• Revenue: $31.353B (FY2023) vs $26.492B (FY2022) - 18.59% growth
• Net Income: $208M (FY2023) vs $1.444B (FY2022) - significant decline
• Total Assets: $98.849B vs $95.209B
• Total Liabilities: $41.755B vs $37.076B

Key Changes:

• $1.2B impairment of customer relationships and acquisition assets
• Increased goodwill from acquisitions (Slack, Acumen, Vlocity)
• Debt at $10.682B, covenant compliant

Risk Factors:

• Operational, regulatory, financial, market volatility risks
• Industry competition risks

Data Sources: octagon-financials-agent, octagon-sec-agent

4. Interpret Results

See [references/interpreting-results.md](references/interpreting-results.md) for guidance on:

• Understanding year-over-year trends
• Identifying significant changes
• Evaluating risk factor evolution
• Assessing strategic shifts

Example Queries

Full Annual Comparison:

Compare key metrics and risk factors between CRM's current and previous year 10-K filings.

Multi-Year Trend:

Compare AAPL's financial performance across the last 3 fiscal years from 10-K filings.

Risk Factor Evolution:

How have TSLA's risk factors changed between FY2024 and FY2023 10-K filings?

Segment Comparison:

Compare revenue segment breakdown between GOOGL's FY2024 and FY2023 10-K filings.

Strategic Changes:

Compare the business description and strategy sections between MSFT's current and prior year 10-K.

Margin Analysis:

Compare gross margin and operating margin trends between NVDA's FY2024 and FY2023 10-K filings.

Comparison Framework

Financial Metrics

| Category | Key Metrics | |----------|-------------| | Revenue | Total revenue, growth rate, segment breakdown | | Profitability | Gross profit, operating income, net income | | Margins | Gross margin, operating margin, net margin | | Balance Sheet | Assets, liabilities, equity, cash, debt | | Cash Flow | Operating, investing, financing, free cash flow | | Per Share | EPS, book value, dividends |

Operational Metrics

| Category | Key Metrics | |----------|-------------| | Customers | Count, retention, concentration | | Employees | Headcount, productivity | | Geographic | Revenue by region, asset location | | Segments | Business unit performance |

Risk Factors

| Category | What to Compare | |----------|-----------------| | Business | Competitive, operational, strategic | | Financial | Liquidity, debt, currency | | Regulatory | Compliance, legal | | Market | Economic, industry | | Technology | Innovation, disruption |

Strategic Elements

| Category | What to Compare | |----------|-----------------| | Mission | Corporate purpose | | Strategy | Growth initiatives | | Investments | R&D, CapEx, M&A | | Markets | Geographic, product expansion |

Year-over-Year Analysis

Financial Trend Assessment

| Metric | Positive Trend | Negative Trend | |--------|----------------|----------------| | Revenue | Growing, accelerating | Declining, slowing | | Margins | Expanding | Contracting | | Earnings | Increasing | Decreasing | | Cash Flow | Strengthening | Weakening | | Debt | Declining | Increasing |

Key Ratios to Track

| Ratio | Calculation | What It Shows | |-------|-------------|---------------| | Revenue Growth | (Current - Prior) / Prior | Top-line momentum | | Gross Margin | Gross Profit / Revenue | Pricing power, costs | | Operating Margin | Operating Income / Revenue | Operational efficiency | | Net Margin | Net Income / Revenue | Bottom-line profitability | | ROE | Net Income / Equity | Shareholder returns | | Debt/Equity | Total Debt / Equity | Financial leverage |

Change Analysis

| Change Type | Significance | |-------------|--------------| | >20% improvement | Major positive development | | 5-20% improvement | Solid progress | | ±5% | Stable/flat | | 5-20% decline | Concerning deterioration | | >20% decline | Material negative change |

Risk Factor Comparison

Types of Changes

| Change | What It Means | |--------|---------------| | New risk added | Emerging concern | | Risk removed | Issue resolved or de-emphasized | | Language expanded | Increased concern | | Language reduced | Diminished concern | | Position changed | Priority shift | | Specificity added | Crystallizing risk |

Priority Assessment

| Position | Prior Year | Current Year | Interpretation | |----------|------------|--------------|----------------| | Top 5 | Top 5 | Top 5 | Persistent priority | | Lower | Lower | Top 5 | Elevated concern | | Top 5 | Top 5 | Lower | Reduced priority | | None | None | Added | New risk | | Present | Present | Removed | Resolved |

Business Description Changes

What to Track

| Section | Changes to Note | |---------|-----------------| | Products | New offerings, discontinued products | | Markets | Geographic expansion, exits | | Customers | Target market shifts | | Competition | New competitors, changed positioning | | Strategy | New initiatives, changed priorities | | Technology | Platform changes, R&D focus |

Strategic Shifts

| Indicator | Examples | |-----------|----------| | New emphasis | Repeated new terms | | Removed emphasis | Topics no longer discussed | | Changed language | Different framing | | Quantification | New metrics disclosed | | Commitment | Specific targets stated |

Segment Performance Comparison

Revenue Analysis

| Segment | Prior Year | Current Year | Growth | Mix Change | |---------|------------|--------------|--------|------------| | Segment A | $X | $Y | Z% | +/- pp | | Segment B | $X | $Y | Z% | +/- pp |

Segment Health Indicators

| Indicator | Positive | Negative | |-----------|----------|----------| | Growth | Accelerating | Decelerating | | Margin | Improving | Declining | | Share of Total | Increasing (if healthy) | Declining | | Investment | Increasing | Divesting |

Multi-Year Trend Analysis

3-5 Year Comparison

Track over extended periods:

• Revenue CAGR
• Margin trajectories
• Balance sheet evolution
• Risk factor patterns
• Strategic consistency

Inflection Points

| Signal | What Changed | |--------|--------------| | Growth acceleration | New product, market | | Margin expansion | Scale, efficiency | | Cash flow improvement | Working capital, CapEx | | Risk emergence | New competitive threat | | Strategic pivot | Changed direction |

Analysis Tips

1. Start with financials: Numbers provide objective comparison base.

1. Read both MD&As: Management commentary reveals context.

1. Track risk factor order: Position indicates priority.

1. Note new disclosures: First-time mentions often significant.

1. Compare segment detail: Business unit changes reveal strategy.

1. Check footnote changes: Accounting policy shifts matter.

Use Cases

• Investment research: Understand company trajectory
• Due diligence: Track performance evolution
• Competitive analysis: Compare across competitors
• Risk monitoring: Identify emerging concerns
• Earnings analysis: Context for quarterly results

Source & license

This open-source skill is cataloged on AgentStack and links to its original source — we do not rehost the code.

• Author: OctagonAI
• Source: OctagonAI/skills
• License: MIT
• Homepage: https://octagonai.co

Install and usage instructions live in the source repository linked above.