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"