/sec-annual-comparison

name: sec-annual-comparison
description: Compare key metrics and disclosures between annual 10-K filings using Octagon MCP. Use when analyzing year-over-year changes in financials, risk factors, business descriptions, and strategic priorities across fiscal years.

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 <TICKER>'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 | L