octagonai/cash-flow-growth

Cash Flow Growth

Retrieve and analyze year-over-year growth in cash flow metrics for public companies using Octagon MCP.

Prerequisites

Ensure Octagon MCP is configured in your AI agent (Cursor, Claude Desktop, Windsurf, etc.). See references/mcp-setup.md for installation instructions.

Query Format

Retrieve cash-flow growth metrics for <TICKER>, limited to <N> records and filtered by period <FY|Q>.

MCP Call:

{
  "server": "octagon-mcp",
  "toolName": "octagon-agent",
  "arguments": {
    "prompt": "Retrieve cash-flow growth metrics for AAPL, limited to 5 records and filtered by period FY"
  }
}

Output Format

The agent returns a table with YoY growth percentages:

| Fiscal Year | Operating Cash Flow Growth (%) | Free Cash Flow Growth (%) | Net Cash Flow Growth (%) | |-------------|-------------------------------|--------------------------|-------------------------| | 2025 | -5.73 | -9.23 | 8.55 | | 2024 | 6.98 | 9.26 | -1.14 | | 2023 | -9.50 | -10.64 | 1.53 | | 2022 | 17.41 | 19.89 | -1.84 | | 2021 | 28.96 | 26.70 | 0.63 |

Data Source: octagon-financials-agent

Key Observations Pattern

After receiving data, generate observations:

1. Operating cash flow trends: Core business cash generation ability
2. Free cash flow health: Capital available for dividends, buybacks, M&A
3. Net cash flow direction: Overall liquidity position changes
4. Volatility assessment: Consistency of cash generation
5. Historical context: Multi-year patterns and inflection points

Metrics Reference

| Metric | Definition | |--------|------------| | Operating Cash Flow Growth | YoY change in cash from core business operations | | Free Cash Flow Growth | YoY change in OCF minus Capital Expenditures | | Net Cash Flow Growth | YoY change in total cash position (OCF + Investing + Financing) |

Analysis Tips

Strong Cash Generation

When Operating Cash Flow Growth > Revenue Growth:

• Efficient working capital management
• Strong collections and payables optimization
• Quality earnings (cash backing profits)

Free Cash Flow Divergence

When FCF Growth differs significantly from OCF Growth:

• Capex changes driving the difference
• Growth investments (negative) or harvesting (positive)
• Check capex as % of revenue trend

Net Cash Flow Volatility

Net Cash Flow often volatile due to:

• Large debt issuances or repayments
• Share buyback programs
• Dividend policy changes
• M&A activity

Working Capital Impact

Significant OCF swings often driven by:

• Inventory build/drawdown
• Receivables collection timing
• Payables management
• Deferred revenue changes

Quality of Earnings Check

Compare to income statement:

• OCF should track or exceed Net Income over time
• Persistent OCF < Net Income signals earnings quality concerns

Follow-up Queries

Based on results, suggest deeper analysis:

• "What drove the operating cash flow decline in [YEAR]?"
• "Break down [COMPANY]'s working capital changes for the last 3 years"
• "Compare [COMPANY]'s free cash flow yield to industry peers"
• "Analyze [COMPANY]'s capital expenditure trends and guidance"