cash-flow-statement

# Cash Flow Statement

Retrieve real-time or historical cash flow statement data 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](references/mcp-setup.md) for installation instructions.

## Query Format

```
Retrieve real-time or historical cash flow statement data for <TICKER>, limited to <N> records and filtered by period <FY|Q>.
```

**MCP Call:**

```json
{
  "server": "octagon-mcp",
  "toolName": "octagon-agent",
  "arguments": {
    "prompt": "Retrieve real-time or historical cash flow statement data for AAPL, limited to 5 records and filtered by period FY"
  }
}
```

## Output Format

The agent returns a table with absolute cash flow figures:

| Fiscal Year | Net Income (USD) | Operating Cash Flow (USD) | Investing Cash Flow (USD) | Financing Cash Flow (USD) | Free Cash Flow (USD) | Net Change in Cash (USD) | Cash at End of Period (USD) |
|-------------|-----------------|--------------------------|--------------------------|--------------------------|---------------------|-------------------------|----------------------------|
| 2025 | $112.01B | $111.48B | $15.19B | -$120.69B | $98.77B | $5.99B | $35.93B |
| 2024 | $93.74B | $118.25B | $2.94B | -$121.98B | $108.81B | -$794.00M | $29.94B |
| 2023 | $96.99B | $110.54B | $3.71B | -$108.49B | $99.58B | $5.76B | $30.74B |
| 2022 | $99.80B | $122.15B | -$2.24B | -$110.75B | $111.44B | -$1.09B | $24.98B |
| 2021 | $94.68B | $104.04B | -$1.45B | -$93.35B | $92.95B | -$386.00M | $35.93B |

**Data Source:** octagon-financials-agent

## Key Observations Pattern

After receiving data, generate observations:

1. **Operating cash flow consistency**: Track OCF relative to Net Income
2. **Financing outflows**: Analyze buybacks and dividends
3. **Free cash flow capacity**: Assess cash generation strength
4. **Capital expenditure trends**: Derive from OCF minus FCF
5. **Cash position trajectory**: Monitor ending cash balance

## Metrics Reference

| Metric | Definition |
|--------|------------|
| Net Income | Bottom-line profit (starting point for OCF) |
| Operating Cash Flow | Cash from core business operations |
| Investing Cash Flow | Cash for/from investments and capex |
| Financing Cash Flow | Cash from/to debt and equity activities |
| Free Cash Flow | OCF minus capital expenditures |
| Net Change in Cash | Total cash change for the period |
| Cash at End of Period | Ending cash and equivalents balance |

## Analysis Tips

### Cash Conversion Quality
```
Cash Conversion = Operating Cash Flow / Net Income
```
- Above 1.0 = high quality earnings
- Consistently below 1.0 = potential concerns

### Capex Calculation
```
Capital Expenditures = Operating Cash Flow - Free Cash Flow
```
Example: $111.48B - $98.77B = $12.71B capex

### Shareholder Returns
Financing outflows typically include:
- Share repurchases (buybacks)
- Dividend payments
- Debt repayments

### Three-Statement Linkage
- Net Income flows from Income Statement
- Cash at End links to Balance Sheet
- Changes explain Balance Sheet movements

### Cash Flow Sustainability
Strong indicators:
- OCF consistently > Net Income
- FCF covers dividends and buybacks
- Positive ending cash trend

Warning signs:
- OCF declining while income grows
- FCF negative with continued buybacks
- Cash position eroding

## Follow-up Queries

Based on results, suggest deeper analysis:

- "Break down [COMPANY]'s financing cash flow between buybacks, dividends, and debt activity"
- "What is [COMPANY]'s capital expenditure trend and guidance for next year?"
- "Compare [COMPANY]'s free cash flow yield to [PEER1] and [PEER2]"
- "Analyze [COMPANY]'s working capital changes driving operating cash flow"