Octagon Financials Agent

Model Name: octagon-financials-agent

Specialized agent for public companies' financial statement analysis and ratio calculations.

Capabilities

• Analyze public companies' financial statements
• Calculate financial metrics and ratios
• Compare performance indicators across companies
• Evaluate profitability, liquidity, and efficiency metrics
• Track financial performance over time
• Conduct peer comparisons and benchmarking

Use Cases

The Financials Agent is best for:

• Deep financial analysis of public companies
• Comparison of company financial performance
• Ratio analysis and financial health assessment
• Trend analysis of key financial metrics
• Competitive positioning analysis

Example Queries

• "Compare the gross margins, operating margins, and net margins of Apple, Microsoft, and Google over the last 3 years"
• "Analyze Tesla's cash flow statements from 2021 to 2023 and calculate free cash flow trends"
• "Calculate and explain key financial ratios for Amazon including P/E, EV/EBITDA, and ROIC"

Code Examples

Python

response = client.responses.create(
    model="octagon-financials-agent",
    input="Compare the gross margins, operating margins, and net margins of Apple, Microsoft, and Google over the last 3 years",
    stream=True
)

JavaScript

const response = await client.responses.create({
  model: "octagon-financials-agent",
  input: "Compare the gross margins, operating margins, and net margins of Apple, Microsoft, and Google over the last 3 years",
  stream: true
});

cURL

curl -X POST https://api.octagonagents.com/v1/responses \
  -H "Content-Type: application/json" \
  -H "Authorization: Bearer your-octagon-api-key" \
  -d '{
    "model": "octagon-financials-agent",
    "input": "Compare the gross margins, operating margins, and net margins of Apple, Microsoft, and Google over the last 3 years",
    "stream": true
  }' \
  --no-buffer

How to Create Effective Prompts for Financial Data Analysis

When working with financial data, consider these strategies for more effective prompts:

1. Specify time periods: Include exact fiscal periods or calendar dates.

   • Example: "Extract quarterly revenue growth rates for AAPL from Q1 2021 through Q4 2023."

2. Request comparative analysis: Ask for comparisons across companies or time periods.

   • Example: "Compare gross margins for MSFT, GOOGL, and AMZN over the last 8 quarters."

3. Focus on specific metrics: Clearly identify which financial metrics you need.

   • Example: "Calculate the debt-to-equity ratio trend for TSLA from 2020 to present."

4. Combine metrics for deeper insights: Request calculations that combine multiple data points.

   • Example: "Analyze the relationship between R&D spending and revenue growth for semiconductor companies."

5. Specify visualization needs: Indicate if you need data presented visually.

   • Example: "Create a chart showing NVDA's quarterly EPS versus analyst estimates for the past 3 years."

6. Request trend analysis: Ask for identification of patterns over time.

   • Example: "Identify trends in operating margins for FB over the past 5 years and highlight significant changes."

7. Incorporate industry benchmarks: Ask for comparisons against industry standards.

   • Example: "How does AMD's P/E ratio compare to the semiconductor industry average?"

8. Target specific financial events: Focus on data around earnings releases or other events.

   • Example: "Extract revenue surprises for NFLX during the last 6 earnings reports."

Financial Data Fields

Income Statement Data

Field	Description
Total Revenue	Gross income from all business activities
Revenue Growth	Year-over-year or quarter-over-quarter percentage change in revenue
Cost of Revenue	Direct costs attributable to the production of goods/services sold
Gross Profit	Revenue minus cost of revenue
Gross Margin	Gross profit as a percentage of revenue
Operating Expenses	Costs associated with business operations
Research & Development	Expenses related to innovation and product development
Sales & Marketing	Expenses for promoting and selling products/services
General & Administrative	Overhead expenses for running the business
Operating Income	Profit from core business operations
Operating Margin	Operating income as a percentage of revenue
Interest Expense	Cost of borrowed money
Interest Income	Income earned from investments or cash
Other Income/Expense	Non-operational gains or losses
Income Before Taxes	Profit before tax obligations
Income Tax Expense	Amount paid in taxes
Effective Tax Rate	Income tax expense as a percentage of income before taxes
Net Income	Final profit after all expenses and taxes
Net Profit Margin	Net income as a percentage of revenue
Earnings Per Share (Basic)	Net income divided by basic weighted average shares
Earnings Per Share (Diluted)	Net income divided by diluted weighted average shares
EBITDA	Earnings Before Interest, Taxes, Depreciation, and Amortization
Adjusted Net Income	Net income excluding one-time items
Extraordinary Items	Unusual or infrequent gains or losses

Balance Sheet Data

Field	Description
Cash & Equivalents	Highly liquid short-term investments
Short-term Investments	Investments expected to be converted to cash within a year
Accounts Receivable	Money owed by customers for goods/services delivered
Inventory	Goods available for sale or materials for production
Total Current Assets	Assets expected to be converted to cash within a year
Property, Plant & Equipment	Long-term tangible assets
Goodwill	Premium paid for acquired companies above fair value
Intangible Assets	Non-physical assets like patents, trademarks, etc.
Long-term Investments	Investments intended to be held for over a year
Total Assets	Sum of all assets owned by the company
Accounts Payable	Money owed to suppliers
Short-term Debt	Debt obligations due within one year
Total Current Liabilities	Obligations due within one year
Long-term Debt	Debt obligations due after one year
Total Liabilities	Sum of all company obligations
Common Stock	Par value of issued common shares
Additional Paid-in Capital	Amount received from issuing stock above par value
Retained Earnings	Accumulated profits not distributed as dividends
Treasury Stock	Stock repurchased by the company
Total Shareholders' Equity	Net value of the company to shareholders
Working Capital	Current assets minus current liabilities
Net Debt	Total debt minus cash and equivalents

Cash Flow Statement Data

Field	Description
Net Income	Starting point for cash flow calculation
Depreciation & Amortization	Non-cash expenses added back to net income
Stock-based Compensation	Non-cash employee compensation expense
Changes in Working Capital	Impact of changes in operational assets and liabilities
Cash from Operating Activities	Net cash generated from core business operations
Capital Expenditures	Investments in long-term assets
Acquisitions	Cash spent on acquiring other businesses
Purchases of Investments	Cash used to purchase marketable securities
Sale of Investments	Cash received from selling marketable securities
Cash from Investing Activities	Net cash used in or provided by investment activities
Debt Issuance	Cash received from issuing debt
Debt Repayment	Cash used to repay debt
Stock Issuance	Cash received from issuing stock
Stock Repurchase	Cash used to buy back company shares
Dividends Paid	Cash distributed to shareholders
Cash from Financing Activities	Net cash used in or provided by financing activities
Net Change in Cash	Overall increase or decrease in cash position
Free Cash Flow	Operating cash flow minus capital expenditures
Operating Cash Flow Margin	Operating cash flow as percentage of revenue

Financial Ratios

Field	Description
Current Ratio	Current assets divided by current liabilities
Quick Ratio	(Current assets - inventory) divided by current liabilities
Debt-to-Equity Ratio	Total debt divided by shareholders' equity
Interest Coverage Ratio	EBIT divided by interest expense
Return on Assets (ROA)	Net income divided by average total assets
Return on Equity (ROE)	Net income divided by average shareholders' equity
Return on Invested Capital (ROIC)	Net operating profit after tax divided by invested capital
Asset Turnover	Revenue divided by average total assets
Inventory Turnover	Cost of goods sold divided by average inventory
Receivables Turnover	Revenue divided by average accounts receivable
Days Sales Outstanding	365 divided by receivables turnover
Days Inventory Outstanding	365 divided by inventory turnover
Price-to-Earnings Ratio	Share price divided by earnings per share
Price-to-Sales Ratio	Market cap divided by annual revenue
Price-to-Book Ratio	Share price divided by book value per share
EV/EBITDA	Enterprise value divided by EBITDA
Dividend Payout Ratio	Dividends per share divided by earnings per share
Dividend Yield	Annual dividends per share divided by share price

Earnings & Estimates

Field	Description
Earnings Announcement Date	Date when earnings were or will be announced
Fiscal Period	Quarter or year for reported earnings
Fiscal Year	Year for reported earnings
Reported EPS	Actual earnings per share reported by company
Estimated EPS	Analysts' consensus EPS estimate
EPS Surprise	Difference between reported and estimated EPS
EPS Surprise Percentage	Percentage difference from estimated EPS
Revenue Surprise	Difference between reported and estimated revenue
Revenue Surprise Percentage	Percentage difference from estimated revenue
Number of Estimates	Count of analyst estimates included in consensus
EPS Growth	Year-over-year growth in earnings per share
Forward P/E	Price divided by estimated future earnings
PEG Ratio	P/E ratio divided by earnings growth rate
Next Earnings Date	Expected date of next earnings announcement
Analyst Revisions	Changes in analyst estimates over time

Company Financial Metrics

Field	Description
Market Capitalization	Total market value of outstanding shares
Enterprise Value	Market cap plus debt minus cash
Shares Outstanding	Total number of shares issued
Float	Number of shares available for public trading
Insider Ownership	Percentage of shares owned by company insiders
Institutional Ownership	Percentage of shares owned by institutions
Book Value Per Share	Shareholders' equity divided by shares outstanding
Tangible Book Value	Book value minus intangible assets
Revenue Per Share	Annual revenue divided by shares outstanding
Cash Per Share	Cash and equivalents divided by shares outstanding
Debt-to-EBITDA	Total debt divided by EBITDA
EBITDA Margin	EBITDA as a percentage of revenue
FCF Margin	Free cash flow as a percentage of revenue
FCF Yield	Free cash flow per share divided by share price
Dividend History	Record of past dividend payments

Growth & Profitability Metrics

Field	Description
3-Year Revenue CAGR	Compound annual growth rate of revenue over 3 years
5-Year Revenue CAGR	Compound annual growth rate of revenue over 5 years
3-Year EPS CAGR	Compound annual growth rate of EPS over 3 years
5-Year EPS CAGR	Compound annual growth rate of EPS over 5 years
Revenue Growth YoY	Year-over-year percentage change in revenue
EPS Growth YoY	Year-over-year percentage change in EPS
Sequential Growth	Quarter-over-quarter growth rates
Gross Margin Trend	Pattern of gross margin changes over time
Operating Margin Trend	Pattern of operating margin changes over time
Net Margin Trend	Pattern of net profit margin changes over time
R&D as % of Revenue	Research and development expense as percentage of revenue
SG&A as % of Revenue	Sales, general, and administrative expenses as percentage of revenue
Capex as % of Revenue	Capital expenditures as percentage of revenue

Segment & Geographic Data

Field	Description
Segment Revenue	Revenue breakdown by business division
Segment Growth	Growth rates for specific business segments
Segment Profit	Profit contribution from each business segment
Segment Margin	Profit margins for specific business segments
Geographic Revenue	Revenue breakdown by region or country
Geographic Growth	Growth rates for specific geographic regions
Product Category Revenue	Revenue breakdown by product category
Customer Concentration	Percentage of revenue from top customers
Segment Assets	Assets allocated to specific business segments
Segment Capex	Capital expenditures by business segment
Domestic vs. International	Split between domestic and international business
Segment R&D	Research and development spending by segment

Dividend & Capital Return Data

Field	Description
Dividend Per Share	Amount paid per share as dividends
Dividend Frequency	How often dividends are paid
Dividend Ex-Date	Date when shares begin trading without dividend rights
Dividend Record Date	Date determining which shareholders receive dividends
Dividend Payment Date	Date when dividends are actually paid
Dividend Growth Rate	Rate of increase in dividend payments
Years of Consecutive Dividends	How many years the company has paid dividends without interruption
Share Repurchase Authorization	Amount approved for stock buybacks
Share Repurchase Activity	Actual amount spent on stock buybacks
Net Share Count Reduction	Percentage reduction in outstanding shares
Total Shareholder Return	Combination of dividends and share price appreciation
Capital Return Yield	Total capital returned to shareholders as percentage of market cap

Industry & Peer Comparison

Field	Description
Industry Classification	Specific industry category
Industry Average P/E	Average price-to-earnings ratio for the industry
Industry Average Margins	Average profit margins for the industry
Industry Average Growth	Average revenue growth for the industry
Peer Group	Set of comparable companies
Relative Valuation	Valuation metrics compared to industry peers
Relative Growth	Growth metrics compared to industry peers
Relative Margins	Margin metrics compared to industry peers
Market Share	Company's share of total industry revenue
Market Share Trend	Changes in market share over time
Competitive Positioning	Standing relative to competitors
Sector Performance	How the company performs within its sector

Note: Some fields may require premium access or might not be available for all securities.