/sec-segment-reporting

name: sec-segment-reporting
description: Analyze business segment performance and reporting from SEC filings using Octagon MCP. Use when researching segment revenue, operating income, margins, geographic breakdown, and segment restructuring from 10-K and 10-Q filings.

SEC Segment Reporting

Analyze business segment performance and reporting from SEC 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)
• **Filing Type** (optional): 10-K (annual) or 10-Q (quarterly)
• **Focus Area** (optional): Revenue, profitability, geographic, trends

2. Execute Query via Octagon MCP

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

Analyze business segment performance and reporting from <TICKER>'s latest quarterly filing.

**MCP Call Format:**

{
  "server": "octagon-mcp",
  "toolName": "octagon-agent",
  "arguments": {
    "prompt": "Analyze business segment performance and reporting from IBM's latest quarterly filing."
  }
}

3. Expected Output

The agent returns structured segment analysis including:

| Segment | Revenue | YoY Growth | Operating Income | Margin | |---------|---------|------------|------------------|--------| | Software | $7,209M | 10.5% | $2,374M | 32.9% | | Consulting | $5,324M | 3.3% | $686M | 12.9% | | Infrastructure | $3,559M | 17.0% | $644M | 18.1% | | Financing | $200M | 10.4% | $123M | 61.6% |

**Key Trends:**

• Infrastructure fastest-growing at 17.0%
• Software maintains highest margin at 32.9%
• Consulting stable revenue driver

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

4. Interpret Results

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

• Understanding segment composition
• Evaluating segment profitability
• Tracking segment restructuring
• Analyzing geographic segments

Example Queries

**Full Segment Analysis:**

Analyze business segment performance and reporting from IBM's latest quarterly filing.

**Segment Profitability:**

Compare operating margins across MSFT's business segments in the latest 10-K.

**Geographic Segments:**

Analyze AAPL's revenue breakdown by geographic region from the latest 10-K.

**Segment Growth Trends:**

Track revenue growth trends by segment for GOOGL over the last 4 quarters.

**Segment Restructuring:**

Has AMZN restructured its segment reporting in recent filings and how?

**Inter-Segment Comparison:**

Compare segment performance between META and GOOGL in their latest annual filings.

Segment Reporting Framework

Operating Segments (ASC 280)

| Element | Description | |---------|-------------| | Revenue | Segment sales, external and intersegment | | Operating Income | Segment profit/loss | | Assets | Segment assets allocated | | CapEx | Capital expenditures by segment | | Depreciation | D&A by segment |

Geographic Segments

| Element | Description | |---------|-------------| | Revenue by Region | Sales by geography | | Long-Lived Assets | Property, equipment by location | | Country Disclosure | Material country breakouts |

Common Segment Structures

| Industry | Typical Segments | |----------|------------------| | Technology | Products, Services, Cloud, Licensing | | Retail | Stores, Online, Wholesale | | Financial | Banking, Wealth, Insurance | | Healthcare | Pharmaceuticals, Devices, Services | | Industrial | Products, Services, Financing |

Key Metrics by Segment

Revenue Metrics

| Metric | Calculation | What It Shows | |--------|-------------|---------------| | Segment Revenue | Reported amount | Size of segment | | Revenue Mix | Segment / Total | Business composition | | Growth Rate | (Current - Prior) / Prior | Momentum | | Intersegment | Internal sales | Vertical integration |

Profitability Metrics

| Metric | Calculation | What It Shows | |--------|-------------|---------------| | Operating Income | Segment profit | Profitability | | Operating Margin | Op Income / Revenue | Efficiency | | Contribution | Segment / Total Op Income | Profit mix | | Margin Trend | Current vs. Prior | Direction |

Asset Metrics

| Metric | Calculation | What It Shows | |--------|-------------|---------------| | Segment Assets | Reported amount | Capital deployed | | Asset Turnover | Revenue / Assets | Efficiency | | CapEx Intensity | CapEx / Revenue | Investment level | | ROA | Op Income / Assets | Return on assets |

Segment Performance Analysis

Growth Assessment

| Growth Rate | Assessment | |-------------|------------| | >20% | High growth, investment phase | | 10-20% | Solid growth | | 5-10% | Moderate growth | | 0-5% | Mature, stable | | Negative | Declining, concern |

Margin Assessment

| Margin Level | Assessment | |--------------|------------| | >30% | High margin, premium | | 20-30% | Strong margin | | 10-20% | Moderate margin | | 5-10% | Low margin | | <5% | Thin margin, scale needed |

Segment Health Matrix

| | High Margin | Low Margin | |---|-------------|------------| | **High Growth** | Star segment | Investment needed | | **Low Growth** | Cash cow | Turnaround/exit |

Geographic Segment Analysis

Revenue Distribution

| Region | Typical Disclosure | |--------|-------------------| | Americas | US, Canada, Latin America | | EMEA | Europe, Middle East, Africa | | APAC | Asia Pacific, Japan | | Other | Emerging markets |

Geographic Considerations

| Factor | What to Assess | |--------|----------------| | Concentration | Over-reliance on one region | | Growth Rates | Regional momentum | | Currency | FX exposure | | Regulatory | Region-specific risks |

Segment Restruct