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 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 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

sec-10k-analysis