How to Analyze Stock Fundamentals & Metrics with AI
An AI assistant connected to the EDGAR database can compute growth rates, margins, returns on capital, leverage, cash generation and per share figures from SEC filings such as Form 10-K and Form 10-Q.
This article shows how to do this metric by metric, including example prompts and live output using the filings of NVIDIA, Alphabet, Microsoft, and more. Connecting the SEC-API.io MCP server takes 2 to 5 minutes in Claude or ChatGPT with a free API key.
On this page:
What metrics to look at
| Metric group | Question | Filing | Section |
|---|---|---|---|
| Growth and scale | Is the business getting bigger, and how? | 10-K for full years, 10-Q for quarters | Income statement, segment note, acquisitions note |
| Profitability | How much of each dollar of revenue is kept? | 10-K and 10-Q; adjusted figures in the 8-K earnings release | Income statement |
| Returns on capital | How well does the company use its capital? | 10-K and 10-Q | Income statement and balance sheet |
| Leverage and liquidity | Can the company carry its debt? | 10-K and 10-Q | Balance sheet, debt note |
| Cash generation | Do profits turn into cash? | 10-K and 10-Q | Cash flow statement |
| Per share figures | What does one share get? | 10-K and 10-Q | Income statement, EPS note, cover page |
Prompts & Output
Growth and scale
Revenue growth year over year
Revenue for the current period divided by revenue for the same period a year earlier, minus one. One 10-K contains three years of revenue, which gives two growth rates.
1
Return NVIDIA's revenue for the three fiscal years in its latest 10-K, with
2
period dates, week count and growth.
Output (NVIDIA 10-K, fiscal year ended 25 January 2026, accession 0001045810-26-000021):
| Fiscal year | Period | Weeks | Revenue ($M) | Growth |
|---|---|---|---|---|
| FY2024 | 30 Jan 2023 to 28 Jan 2024 | 52 | 60,922 | |
| FY2025 | 29 Jan 2024 to 26 Jan 2025 | 52 | 130,497 | +114.2% |
| FY2026 | 27 Jan 2025 to 25 Jan 2026 | 52 | 215,938 | +65.5% |
What to watch out for: a 53 week year adds about 2 percent to growth. Broadcom's fiscal 2024 had 53 weeks, so its fiscal 2025 growth of 23.9% compares against a longer year. Always ask for the week count.
Compound annual growth rate over three to five years
Ending value divided by beginning value, raised to the power of one over the number of years, minus one. Six fiscal years of data give five compounding intervals.
1
Compute Microsoft's revenue CAGR from fiscal 2021 to fiscal 2026 from its 10-K
2
filings. State the number of intervals.
Output (10-K for FY2023, accession 0000950170-23-035122, and FY2026, accession 0001193125-26-323660):
| FY2021 revenue ($M) | FY2026 revenue ($M) | Intervals | CAGR |
|---|---|---|---|
| 168,088 | 331,839 | 5 | 14.6% |
What to watch out for: when a company changes its fiscal year end, it files a transition period shorter than twelve months. Counting that period as a full year overstates the growth rate.
Segment growth
The same growth calculation, applied to each reportable segment in the segment note.
1
Return Alphabet's segment revenue and segment operating income for the last
2
two years from its latest 10-K, with growth.
Output (Alphabet 10-K, fiscal year ended 31 December 2025, accession 0001652044-26-000018):
| Segment | Revenue 2024 ($M) | Revenue 2025 ($M) | Growth | Operating income 2025 ($M) |
|---|---|---|---|---|
| Google Services | 304,930 | 342,721 | +12.4% | 139,404 |
| Google Cloud | 43,229 | 58,705 | +35.8% | 13,910 |
| Other Bets | 1,648 | 1,537 | −6.7% | (7,515) |
What to watch out for: when a company reorganises its segments, it restates prior years under the new structure. Compare segment figures within one filing. The sum of the segments can also differ from the company total. Alphabet reports hedging gains outside its segments.
Organic growth versus acquired growth
Total growth minus the revenue from businesses acquired during the period. The acquired revenue is in the business combinations note (ASC 805). Currency effects are usually only described in the MD&A.
1
Split Broadcom's fiscal 2024 revenue growth into the VMware contribution and
2
growth excluding VMware.
Output (Broadcom 10-K, fiscal year ended 3 November 2024, accession 0001730168-24-000139):
| Revenue FY2023 ($M) | Revenue FY2024 ($M) | Reported growth | VMware revenue since 22 Nov 2023 ($M) | Growth excl. VMware |
|---|---|---|---|---|
| 35,819 | 51,574 | +44.0% | 12,384 | +9.4% |
What to watch out for: a deal that closes mid year affects growth in two years. Broadcom's fiscal 2024 also had 53 weeks.
Profitability
Gross margin
Gross profit divided by revenue. Some companies report gross profit directly. For the others, calculate revenue minus cost of revenue. US GAAP leaves the gross profit line optional.
1
Return NVIDIA's revenue, cost of revenue and gross margin for the last two
2
fiscal years. Say if gross profit is reported.
Output (NVIDIA 10-K FY2026, accession 0001045810-26-000021):
| Fiscal year | Revenue ($M) | Cost of revenue ($M) | Gross profit ($M) | Gross margin |
|---|---|---|---|---|
| FY2025 | 130,497 | 32,639 | 97,858 | 75.0% |
| FY2026 | 215,938 | 62,475 | 153,463 | 71.1% |
What to watch out for: companies put different costs into cost of revenue. NVIDIA's FY2026 cost of revenue includes $3.2 billion of inventory purchase obligation charges. Other companies report amortisation or shipping as separate expenses. Compare gross margins only when the cost definitions match.
Operating margin
Operating income divided by revenue. Operating income is profit after all operating costs and before interest and tax. This makes it the best profit measure for comparing companies.
1
Return Meta's revenue, operating income and operating margin for the three
2
years in its latest 10-K.
Output (Meta 10-K, fiscal year ended 31 December 2025, accession 0001628280-26-003942):
| Year | Revenue ($M) | Operating income ($M) | Operating margin |
|---|---|---|---|
| 2023 | 134,902 | 46,751 | 34.7% |
| 2024 | 164,501 | 69,380 | 42.2% |
| 2025 | 200,966 | 83,276 | 41.4% |
What to watch out for: banks, insurers and some REITs do not report operating income. Restructuring or legal charges can also move the margin by several points in a single year.
Net margin
Net income attributable to the parent divided by revenue. Net income including noncontrolling interests is the wider figure.
1
Return Apple's revenue, net income and net margin for the three fiscal years
2
in its latest 10-K.
Output (Apple 10-K, fiscal year ended 27 September 2025, accession 0000320193-25-000079):
| Fiscal year | Revenue ($M) | Net income ($M) | Net margin |
|---|---|---|---|
| FY2023 | 383,285 | 96,995 | 25.3% |
| FY2024 | 391,035 | 93,736 | 24.0% |
| FY2025 | 416,161 | 112,010 | 26.9% |
What to watch out for: one time tax items. Apple's lower FY2024 margin reflects a one time income tax charge of about $10.2 billion related to the European Commission State Aid decision. The charge is disclosed in the tax note.
EBITDA as a constructed figure
Companies do not report EBITDA in their financial statements, so it has to be calculated. The standard calculation is operating income plus depreciation and amortisation from the cash flow statement.
1
Construct Tesla's EBITDA for three years as operating income plus D&A from the
2
cash flow statement. Show each input.
Output (Tesla 10-K, fiscal year ended 31 December 2025, accession 0001628280-26-003952):
| Year | Operating income ($M) | D&A and impairment ($M) | EBITDA ($M) | EBITDA margin |
|---|---|---|---|---|
| 2023 | 8,891 | 4,667 | 13,558 | 14.0% |
| 2024 | 7,076 | 5,368 | 12,444 | 12.7% |
| 2025 | 4,355 | 6,148 | 10,503 | 11.1% |
What to watch out for: Tesla's depreciation line also includes impairment. Adjusted EBITDA from company earnings releases usually also adds back stock based compensation. Always state which definition an EBITDA figure uses.
Returns on capital
Return on equity
Net income divided by average stockholders equity, which is the opening and closing balance divided by two. Both balance sheet dates are in the same 10-K.
1
Compute Apple's return on equity for its latest fiscal year on average equity
2
and on closing equity.
Output (Apple 10-K FY2025, accession 0000320193-25-000079):
| Net income ($M) | Equity 28 Sep 2024 ($M) | Equity 27 Sep 2025 ($M) | ROE on average | ROE on closing |
|---|---|---|---|---|
| 112,010 | 56,950 | 73,733 | 171.4% | 151.9% |
What to watch out for: buybacks reduce equity, which raises ROE even when operations stay the same. With negative equity, the ratio has no meaning. Always read ROE together with ROA.
Return on assets
Net income divided by average total assets. Total assets include everything funded by both debt and equity, so ROA removes the effect of leverage that inflates ROE.
1
Compute Broadcom's return on average assets for its latest fiscal year and
2
goodwill plus intangibles as a share of assets.
Output (Broadcom 10-K, fiscal year ended 2 November 2025, accession 0001730168-25-000121):
| Net income ($M) | Average assets ($M) | ROA | Goodwill and intangibles share of assets |
|---|---|---|---|
| 23,126 | 168,369 | 13.7% | 76.0% |
What to watch out for: goodwill from acquisitions increases total assets. After the VMware deal, goodwill and intangibles make up three quarters of Broadcom's assets, which lowers its ROA compared with peers that grew organically.
Return on invested capital
Net operating profit after tax (NOPAT) divided by average invested capital. NOPAT is operating income multiplied by one minus the effective tax rate. Invested capital is debt plus equity, minus cash and short term investments.
1
Compute Microsoft's ROIC for its latest fiscal year. Show NOPAT, the tax rate
2
and invested capital at both year ends.
Output (Microsoft 10-K, fiscal year ended 30 June 2026, accession 0001193125-26-323660):
| NOPAT ($M) | Tax rate | Invested capital 30 Jun 2025 ($M) | Invested capital 30 Jun 2026 ($M) | ROIC |
|---|---|---|---|---|
| 125,127 | 19.4% | 292,065 | 405,838 | 35.9% |
What to watch out for: there is no standard definition of invested capital, and some definitions include lease liabilities. Set the definition in the prompt and use the same one for every company you compare.
Leverage and liquidity
Total debt to equity
Total debt divided by stockholders equity. Total debt is the sum of the short term and long term debt lines. Operating leases (ASC 842) are reported separately.
1
Assemble Oracle's total debt at its latest year end and report debt to equity
2
excluding and including leases.
Output (Oracle 10-K, fiscal year ended 31 May 2026, accession 0001193125-26-277521):
| Total debt ($M) | Equity ($M) | D/E excl. leases | D/E incl. operating leases | D/E incl. all leases |
|---|---|---|---|---|
| 129,541 | 42,508 | 3.05x | 3.76x | 3.94x |
What to watch out for: Oracle reports $37.9 billion of lease liabilities within other liability lines, so a query for debt alone leaves them out. Also make sure the current portion of long term debt is counted only once.
Net debt to EBITDA
Total debt minus cash and marketable securities, divided by EBITDA. Credit agreements use this ratio more than any other.
1
Compute net debt to EBITDA for Oracle and CoreWeave at their latest fiscal
2
year ends. Show every input.
Output (Oracle 10-K FY2026; CoreWeave 10-K, fiscal year ended 31 December 2025, accession 0001769628-26-000104):
| Company | Net debt ($M) | EBITDA ($M) | Net debt / EBITDA |
|---|---|---|---|
| Oracle | 97,647 | 29,900 | 3.27x |
| CoreWeave | 18,212 | 2,408 | 7.56x |
What to watch out for: net debt is measured on one day and EBITDA over twelve months. Borrowing in the last week of the year shows up in full. The EBITDA used for loan covenants is defined in the credit agreement and often differs from the standard calculation.
Interest coverage
Operating income divided by interest expense.
1
Compute interest coverage for Oracle and CoreWeave for their latest year. Show
2
interest expense and any capitalised interest.
Output (same filings as above):
| Company | Operating income ($M) | Interest expense ($M) | Coverage | Interest capitalised ($M) |
|---|---|---|---|---|
| Oracle | 20,606 | 4,599 | 4.5x | not reported |
| CoreWeave | (46) | 1,148 | −0.04x | 182 |
What to watch out for: capitalised interest. CoreWeave added $182 million of interest to the cost of data center construction. That amount is missing from the interest expense on its income statement.
Current ratio
Current assets divided by current liabilities. The quick ratio subtracts inventory from current assets first.
1
Return the current and quick ratio for Amazon and Tesla at their latest year
2
end.
Output (Amazon 10-K, fiscal year ended 31 December 2025, accession 0001018724-26-000004; Tesla 10-K FY2025):
| Company | Current assets ($M) | Current liabilities ($M) | Current ratio | Quick ratio |
|---|---|---|---|---|
| Amazon | 229,083 | 218,005 | 1.05 | 0.88 |
| Tesla | 68,642 | 31,714 | 2.16 | 1.77 |
What to watch out for: banks and insurers do not split their balance sheets into current and non current items. A low ratio is also normal for retailers like Amazon that collect from customers before they pay suppliers.
Cash generation
Operating cash flow
Reported directly on the cash flow statement. Companies with discontinued operations report a separate figure for continuing operations.
1
Return Meta's operating cash flow for the three years in its latest 10-K.
Output (Meta 10-K FY2025, accession 0001628280-26-003942):
| Year | Operating cash flow ($M) | Growth |
|---|---|---|
| 2023 | 71,113 | |
| 2024 | 91,328 | +28.4% |
| 2025 | 115,800 | +26.8% |
What to watch out for: the timing of customer payments and supplier payments around year end can shift cash from one year to the next. Check the receivables and payables lines as well.
Free cash flow and why the definition varies
Usually operating cash flow minus purchases of property, plant and equipment. Free cash flow is a non GAAP measure, so companies treat asset sale proceeds, finance lease payments and capitalised software differently.
1
Compute Amazon's free cash flow for the last two years on three bases and show
2
each deduction.
Output (Amazon 10-K FY2025, accession 0001018724-26-000004):
| Basis ($M) | 2024 | 2025 |
|---|---|---|
| Operating cash flow less capex | 32,878 | 7,695 |
| Plus asset sale proceeds and incentives (Amazon's definition) | 38,219 | 11,194 |
| Less finance lease and financing obligation principal | 35,507 | 9,309 |
What to watch out for: companies use different definitions, so check them before you compare. Amazon's capital spending of $131.8 billion in 2025 reduced free cash flow by 70 to 77 percent, depending on the definition.
Cash conversion against net income
Operating cash flow divided by net income. A ratio above one means the company generates more cash than it reports as profit. A ratio below one means less of its profit turns into cash.
1
Return Palantir's net income, operating cash flow, cash conversion and stock
2
based compensation for three years.
Output (Palantir 10-K, fiscal year ended 31 December 2025, accession 0001321655-26-000011):
| Year | Net income ($M) | Operating cash flow ($M) | Cash conversion | Stock based comp ($M) |
|---|---|---|---|---|
| 2023 | 209.8 | 712.2 | 3.39x | 475.9 |
| 2024 | 462.2 | 1,153.9 | 2.50x | 691.6 |
| 2025 | 1,625.0 | 2,134.5 | 1.31x | 684.0 |
What to watch out for: stock based compensation is added back to operating cash flow, which raises the ratio. The cost shows up as dilution. Palantir's diluted share count rose 11.6% over the two years.
Capital expenditure as a share of revenue
Capex divided by revenue. It shows how much a company needs to reinvest to grow.
1
Return capex and capex as a share of revenue for Microsoft, Meta and Alphabet
2
for their latest fiscal year.
Output (Microsoft 10-K FY2026; Meta and Alphabet 10-K FY2025):
| Company | Fiscal year end | Capex ($M) | Revenue ($M) | Capex / revenue |
|---|---|---|---|---|
| Microsoft | 30 Jun 2026 | 115,948 | 331,839 | 34.9% |
| Meta | 31 Dec 2025 | 69,691 | 200,966 | 34.7% |
| Alphabet | 31 Dec 2025 | 91,447 | 402,836 | 22.7% |
What to watch out for: some investment is reported outside the capex line. Microsoft also finances data centers through finance leases, with $3.1 billion of principal paid in FY2026. A capex to depreciation ratio well above one, such as 3.7x at Meta in 2025, means the asset base is growing.
Per share figures
Basic and diluted share counts and where each is found
The three share counts from the first section, shown for Apple.
1
Return Apple's cover page share count with its date and the weighted average
2
basic and diluted counts for FY2025.
Output (Apple 10-K FY2025, accession 0000320193-25-000079):
| Cover page count (17 Oct 2025) | Weighted basic | Weighted diluted | Filed EPS basic / diluted |
|---|---|---|---|
| 14,776 million | 14,949 million | 15,005 million | $7.49 / $7.46 |
What to watch out for: the cover page count is measured after year end and includes later buybacks. Dividing annual earnings by it overstates EPS.
Earnings per share as filed versus computed
Companies report basic and diluted EPS directly. Net income divided by weighted shares gives roughly the same number. Differences come from the two class method or preferred dividends.
1
Compare Alphabet's filed diluted EPS for 2025 by share class with net income
2
divided by weighted diluted shares.
Output (Alphabet 10-K FY2025, accession 0001652044-26-000018):
| Class A diluted | Class B diluted | Class C diluted | Computed (132,170 / 12,230 million shares) |
|---|---|---|---|
| $10.82 | $10.81 | $10.80 | $10.81 |
What to watch out for: Alphabet uses the two class method, and Class A diluted EPS assumes that Class B shares convert. Use the reported figure, since it is audited. If your calculation differs, read the EPS note.
The effect of buybacks on per share growth
EPS growth is roughly net income growth plus the reduction in diluted shares. Cash spent on buybacks is on the cash flow statement.
1
Split Apple's diluted EPS growth from FY2021 to FY2025 into net income growth
2
and share count reduction.
Output (Apple 10-K FY2025 and FY2022, accession 0000320193-22-000108):
| Fiscal year | Net income ($M) | Diluted shares (M) | Diluted EPS | Buybacks ($M) |
|---|---|---|---|---|
| FY2021 | 94,680 | 16,865 | $5.61 | 85,971 |
| FY2025 | 112,010 | 15,005 | $7.46 | 90,711 |
| Change | +18.3% | −11.0% | +33.0% | 438,583 over five years |
About 41% of Apple's EPS growth over the four years came from the lower share count.
What to watch out for: shares bought late in the year have little effect on that year's weighted average. New shares issued for stock compensation also offset part of every buyback.
What to consider when comparing metrics
Fiscal years
Fiscal years end in different months: NVIDIA in late January, Oracle on 31 May, Microsoft on 30 June, Apple in late September, Broadcom in early November, and Meta, Alphabet and Amazon on 31 December. A table labelled only by year can compare periods up to eleven months apart. Label each period with its end date, or use trailing twelve month figures from the last four quarters.
Missing line items and restatements
Not every company reports every line item. In the examples above, Tesla has no separate depreciation or interest expense line, Oracle has no single D&A line and Microsoft has no short term debt line. If a ratio uses a substitute line, say so. When a company restates its results, the same year appears with two sets of figures. Use the figures from the most recent filing.
GAAP vs. non GAAP figures
Adjusted EPS, adjusted operating margin, organic growth and adjusted EBITDA come from the 8-K Item 2.02 earnings release. The company defines them and reconciles them to GAAP under Regulation G. The 10-K financial statements only contain GAAP figures. Keep adjusted figures in separate rows and ask the assistant to name the source form for every figure.
Industry specific ratios
Some ratios only work within one industry. Banks have no current ratio because their balance sheets have no current section. Railroads and utilities have low ROA because they own large asset bases. High debt to equity at a finance subsidiary reflects its business model. Build peer groups by SIC code from the filing header and flag ratios that differ by sector.
FAQ
Does the assistant compute the ratios or retrieve them? It computes them. The MCP server returns the reported values from the filings and the assistant does the math, so you can trace every input.
How far back does the data go? Filings go back to 1993. Structured financial data starts in 2009, so ratios need filings from 2009 onward. Earlier filings are available as text.
Do I need a ticker or a CIK? Either works. The mapping tool converts a ticker or company name to a CIK. Companies with several share classes may file under one ticker. Alphabet files under GOOG.
Which figures are filed and which are constructed? Revenue, operating income, net income, assets, equity, operating cash flow, capex and EPS are reported in the filings. Only some companies report gross profit. EBITDA, free cash flow, total debt, net debt and invested capital are calculated.
Why does my figure differ from a data vendor's? Either the company does not report a subtotal and the calculations differ, or the vendor reclassifies costs. Ask the assistant to show every input to see which.
Can the ratios be computed for several companies in one prompt? Yes. Name the companies, set one definition for each calculated metric and ask for one row per company per year.
Related reading
Setup: SEC financial data in Claude, SEC financial data in ChatGPT, MCP server documentation, free API key.
Getting the statements: how to access financial statements with ChatGPT or Claude and download financial statements from EDGAR filings as an Excel file.
Read the filings: how to read a 10-K, Form 8-K Item 2.02 and Exhibit 99 earnings announcements, cybersecurity incidents under Item 1.05 of Form 8-K.
Ownership and insiders: how to track insider trading with AI, where to find insider trades on Forms 3, 4 and 5, how to track institutional portfolios with AI, guide to corporate ownership structures, where to find proxy statements on DEF 14A.
Wider analysis and prompts: analyze stocks with AI, the prompt library.
Educational content about accessing and analysing SEC filing data. Not investment advice, legal advice, or a recommendation to buy or sell any security.
Last updated: 22 September 2026