Profitability Analysis

Purpose

Evaluate a company's ability to generate returns on the capital deployed by shareholders, lenders, and the business itself. Analyze the margin hierarchy across reporting periods, compute return metrics (ROE, ROA, ROIC, ROCE), and decompose returns using the DuPont framework to identify whether profitability is driven by margins, asset efficiency, or leverage. Compare returns against the company's cost of capital to determine whether it is creating or destroying value.

Data Fetching Process

Consult ${CLAUDE_PLUGIN_ROOT}/skills/_shared/references/data-sources.md for full source details and fallback behavior.

1. Resolve the ticker. Fetch https://www.sec.gov/files/company_tickers.json using the sec-fetch skill (see data-sources.md), locate the company's CIK, and pad it to 10 digits. Cache the CIK and official company name.

2. Fetch structured financial data (primary). Request the SEC EDGAR XBRL company facts endpoint:

   https://data.sec.gov/api/xbrl/companyfacts/CIK{10-digit-CIK}.json
   

   Extract the following XBRL concepts:

   • Income statement: Revenues, GrossProfit, OperatingIncomeLoss, NetIncomeLoss, DepreciationDepletionAndAmortization, InterestExpense, IncomeTaxExpenseBenefit
   • Balance sheet: Assets, StockholdersEquity, Goodwill, IntangibleAssetsNetExcludingGoodwill, LongTermDebt, ShortTermBorrowings or DebtCurrent, CashAndCashEquivalentsAtCarryingValue, ShortTermInvestments