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 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 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
- Start with financials: Numbers provide objective comparison base.
- Read both MD&As: Management commentary reveals context.
- Track risk factor order: Position indicates priority.
- Note new disclosures: First-time mentions often significant.
- Compare segment detail: Business unit changes reveal strategy.
- 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