SKILL.md
SEC 10-K Analysis
Analyze annual 10-K filings for public companies to extract key financial metrics, risk factors, and business insights 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 Year (optional): Specific fiscal year if not latest
- Focus Areas (optional): Financial metrics, risk factors, business segments, etc.
2. Execute Query via Octagon MCP
Use the octagon-agent tool with a natural language prompt:
Analyze the latest 10-K filing for <TICKER> and extract key financial metrics and risk factors.MCP Call Format:
{
"server": "octagon-mcp",
"toolName": "octagon-agent",
"arguments": {
"prompt": "Analyze the latest 10-K filing for AAPL and extract key financial metrics and risk factors."
}
}3. Expected Output
The agent returns comprehensive 10-K analysis including:
Financial Metrics:
- Total Revenues
- Net Income
- Total Assets
- Total Liabilities
- Cash Flows (Operating, Investing, Financing)
Risk Factors:
- Macroeconomic risks
- Operational risks
- Regulatory risks
- Cybersecurity threats
- Supply chain dependencies
Source Citations:
- Specific page references from the 10-K filing
Data Sources: octagon-financials-agent, octagon-sec-agent
4. Interpret Results
See [references/interpreting-results.md](references/interpreting-results.md) for guidance on:
- Understanding 10-K structure and sections
- Analyzing risk factor disclosures
- Comparing YoY changes in filings
- Identifying material changes
Example Queries
Standard 10-K Analysis:
Analyze the latest 10-K filing for AAPL and extract key financial metrics and risk factors.Risk Factor Focus:
Extract and summarize all risk factors from TSLA's latest 10-K filing.Business Segment Analysis:
Analyze the business segment disclosures in MSFT's latest 10-K filing.Management Discussion:
Extract the Management Discussion and Analysis (MD&A) section from AMZN's latest 10-K.Historical Comparison:
Compare key financial metrics between GOOGL's 2024 and 2023 10-K filings.Specific Section Extraction:
Extract the legal proceedings section from META's latest 10-K filing.10-K Filing Structure
| Section | Content |
|---|---|
| Part I, Item 1 | Business Overview |
| Part I, Item 1A | Risk Factors |
| Part I, Item 1B | Unresolved Staff Comments |
| Part I, Item 2 | Properties |
| Part I, Item 3 | Legal Proceedings |
| Part II, Item 5 | Market Information |
| Part II, Item 6 | Selected Financial Data |
| Part II, Item 7 | MD&A (Management Discussion & Analysis) |
| Part II, Item 7A | Quantitative & Qualitative Disclosures |
| Part II, Item 8 | Financial Statements |
| Part II, Item 9A | Controls and Procedures |
Key Metrics to Extract
| Metric | Location | Importance |
|---|---|---|
| Total Revenue | Income Statement | Top-line performance |
| Net Income | Income Statement | Bottom-line profitability |
| Total Assets | Balance Sheet | Company size/resources |
| Total Liabilities | Balance Sheet | Debt obligations |
| Operating Cash Flow | Cash Flow Statement | Cash generation |
| Free Cash Flow | Cash Flow Statement | Available cash |
| Segment Revenue | Notes | Business mix |
Risk Factor Categories
Common risk categories disclosed in 10-K filings:
| Category | Examples |
|---|---|
| Macroeconomic | Economic downturns, inflation, interest rates |
| Operational | Supply chain, manufacturing, quality control |
| Regulatory | Government regulation, compliance, legal |
| Competitive | Market competition, pricing pressure |
| Technology | Cybersecurity, IP protection, obsolescence |
| Financial | Foreign exchange, credit, liquidity |
| Strategic | M&A integration, market expansion |
Analysis Tips
- Compare to prior year: Look for new risk factors or removed ones - changes signal shifting concerns.
- Read MD&A carefully: Management's discussion often provides context not in the numbers.
- Check auditor opinion: Located in Item 8, indicates any concerns about financial statements.
- Review legal proceedings: Item 3 discloses ongoing litigation that could impact financials.
- Segment analysis: Breakdown by segment reveals which businesses drive growth or drag performance.
- Cross-reference with 10-Q: Quarterly filings may have more recent updates.
Use Cases
- Due diligence: Comprehensive review before investment decisions
- Risk assessment: Identify company-specific and industry risks
- Competitive analysis: Compare disclosures across industry peers
- Earnings prep: Understand company context before earnings calls
- Compliance review: Verify disclosure completeness