Profitability & Market Ratios

Deterministic profitability and market-value analysis tools for AI agents — margins, ROA, ROE, ROCE, ROIC, EPS, P/E, P/B, dividend yield and payout ratio via…

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What it can do

Calculate Gross Margin: Calculate gross margin: gross profit divided by net sales — the share of revenue retained after the direct cost of goods sold. Formula: Gross Margin = Gross Profit / Net Sales.
Calculate Operating Margin: Calculate operating margin: operating income divided by net sales — profitability from core operations before financing and tax. Formula: Operating Margin = Operating Incom
Calculate Net Margin: Calculate net margin: net income divided by net sales — the share of every revenue pound/dollar that reaches the bottom line. Formula: Net Margin = Net Income / Net Sales. WHEN T

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Deterministic profitability and market-value analysis tools for AI agents — margins, ROA, ROE, ROCE, ROIC, EPS, P/E, P/B, dividend yield and payout ratio via Model Context Protocol. Useful for corporate finance, equity analysis, financial analysis, quantitative analysis, financial formulas and financial modeling.

Server tool list (12)

Raw names from tools/list. Only developers need these.

calculate_gross_margin	Calculate gross margin: gross profit divided by net sales — the share of revenue retained after the direct cost of goods sold. Formula: Gross Margin = Gross Profit / Net Sales. WHEN TO USE: Use to assess product-level economics and pricing power before operating expenses are considered. WHEN NOT TO USE: Do NOT use gross margin to compare companies with different cost classification practices (COGS boundary varies). BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { gross_margin: decimal (e.g. 0.40 = 40%), gross_margin_pct: number (e.g. 40.0), inputs }. PARAMETERS: gross_profit (required): Gross profit = net sales - COGS, e.g. 400000. Must be >= 0. net_sales (required): Net sales / revenue, e.g. 1000000. Must be > 0.
calculate_operating_margin	Calculate operating margin: operating income divided by net sales — profitability from core operations before financing and tax. Formula: Operating Margin = Operating Income / Net Sales. WHEN TO USE: Use to compare core business profitability across peers and over time, independent of capital structure. WHEN NOT TO USE: Do NOT use when one-off items distort operating income — consider normalised EBIT instead. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { operating_margin: decimal (e.g. 0.18 = 18%), operating_margin_pct: number (e.g. 18.0), inputs }. PARAMETERS: operating_income (required): Operating income / EBIT, e.g. 180000. May be negative. net_sales (required): Net sales / revenue, e.g. 1000000. Must be > 0.
calculate_net_margin	Calculate net margin: net income divided by net sales — the share of every revenue pound/dollar that reaches the bottom line. Formula: Net Margin = Net Income / Net Sales. WHEN TO USE: Use for the all-in profitability picture after operating costs, interest, tax and other items. WHEN NOT TO USE: Do NOT use alone — net margin is affected by capital structure and tax; compare alongside gross and operating margins. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { net_margin: decimal (e.g. 0.12 = 12%), net_margin_pct: number (e.g. 12.0), inputs }. PARAMETERS: net_income (required): Net income after tax, e.g. 120000. May be negative. net_sales (required): Net sales / revenue, e.g. 1000000. Must be > 0.
calculate_return_on_assets	Calculate return on assets (ROA): net income divided by average total assets — how efficiently a company converts its asset base into profit. Formula: ROA = Net Income / Average Total Assets. WHEN TO USE: Use to measure management’s efficiency in deploying all assets, independent of how they are financed. WHEN NOT TO USE: Do NOT compare ROA across industries with different asset intensity; use ROIC for a cleaner operating view. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { return_on_assets: decimal (e.g. 0.08 = 8%), return_on_assets_pct: number (e.g. 8.0), inputs }. PARAMETERS: net_income (required): Net income after tax, e.g. 84000. May be negative. begin_total_assets (required): Total assets at period start, e.g. 1000000. Must be > 0. end_total_assets (required): Total assets at period end, e.g. 1100000. Must be > 0.
calculate_return_on_equity	Calculate return on equity (ROE): net income divided by average shareholders’ equity — the return earned on the owners’ invested capital. Formula: ROE = Net Income / Average Shareholders’ Equity. WHEN TO USE: Use to assess how well management generates returns for shareholders; decompose via DuPont (margin x turnover x leverage) for drivers. WHEN NOT TO USE: Do NOT use when equity is small or negative (distress / heavy buybacks) — ROE explodes or inverts and misleads. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { return_on_equity: decimal (e.g. 0.15 = 15%), return_on_equity_pct: number (e.g. 15.0), inputs }. PARAMETERS: net_income (required): Net income after tax, e.g. 150000. May be negative. begin_equity (required): Shareholders’ equity at period start, e.g. 950000. Must be > 0. end_equity (required): Shareholders’ equity at period end, e.g. 1050000. Must be > 0.
calculate_return_on_capital_employed	Calculate return on capital employed (ROCE): EBIT divided by capital employed (total assets minus current liabilities) — return generated by the capital actually deployed in the business. Formula: ROCE = EBIT / (Total Assets - Current Liabilities). WHEN TO USE: Use to compare profitability across companies with different capital structures — EBIT (pre-financing) over all capital employed. WHEN NOT TO USE: Do NOT use when capital employed is near zero or negative; prefer ROIC for after-tax operating returns. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { return_on_capital_employed: decimal (e.g. 0.22 = 22%), return_on_capital_employed_pct: number (e.g. 22.0), inputs }. PARAMETERS: ebit (required): Earnings before interest and taxes, e.g. 220000. May be negative. total_assets (required): Total assets, e.g. 1200000. Must be > 0. current_liabilities (required): Total current liabilities, e.g. 200000. Must be >= 0.
calculate_return_on_invested_capital	Calculate return on invested capital (ROIC): NOPAT divided by invested capital — the after-tax operating return on capital invested in the business. Formula: ROIC = NOPAT / Invested Capital. WHEN TO USE: Use to assess value creation: ROIC above the cost of capital creates value; below it destroys value. Core metric for investors. WHEN NOT TO USE: Do NOT use if you lack a clean NOPAT or invested capital figure — inconsistent definitions make ROIC incomparable. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { return_on_invested_capital: decimal (e.g. 0.18 = 18%), return_on_invested_capital_pct: number (e.g. 18.0), inputs }. PARAMETERS: nopat (required): Net operating profit after tax = EBIT x (1 - tax rate), e.g. 180000. May be negative. invested_capital (required): Invested capital (equity + debt - cash, or operating assets - operating liabilities), e.g. 1000000. Must be > 0.
calculate_eps	Calculate earnings per share (EPS): net income divided by weighted average shares outstanding — profit attributable to each share. Formula: EPS = Net Income / Weighted Average Shares Outstanding. WHEN TO USE: Use as the denominator for P/E and payout ratios and to track per-share profitability over time. WHEN NOT TO USE: Do NOT use basic share count when convertible securities exist — use diluted shares for a conservative EPS. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { eps: number (currency per share, e.g. 1.25), inputs }. PARAMETERS: net_income (required): Net income attributable to common shareholders, e.g. 1250000. May be negative. weighted_avg_shares_outstanding (required): Weighted average shares outstanding during the period, e.g. 1000000. Must be > 0.
calculate_pe_ratio	Calculate the price-to-earnings (P/E) ratio: share price divided by earnings per share — how much investors pay per unit of earnings. Formula: P/E = Share Price / EPS. WHEN TO USE: Use for relative valuation against peers, sector averages, or a company’s own history. Higher P/E = market expects higher growth. WHEN NOT TO USE: Do NOT use when EPS is negative or near zero (ratio becomes meaningless), and prefer forward P/E for growth companies. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { pe_ratio: number (e.g. 18.5 = 18.5x), inputs }. PARAMETERS: share_price (required): Current share price in currency units, e.g. 45.00. Must be > 0. earnings_per_share (required): Earnings per share (trailing or forward), e.g. 2.43. Must be > 0 for a meaningful ratio.
calculate_pb_ratio	Calculate the price-to-book (P/B) ratio: share price divided by book value per share — how much investors pay relative to accounting net asset value. Formula: P/B = Share Price / Book Value Per Share. WHEN TO USE: Use for valuing asset-heavy or financial companies where book value is a meaningful anchor; P/B < 1 can indicate undervaluation or low returns on assets. WHEN NOT TO USE: Do NOT use for asset-light businesses (intangibles make book value meaningless) or where book value is negative. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { pb_ratio: number (e.g. 1.4 = 1.4x), inputs }. PARAMETERS: share_price (required): Current share price, e.g. 45.00. Must be > 0. book_value_per_share (required): Book value per share (shareholders’ equity / shares), e.g. 32.00. Must be > 0 for a meaningful ratio.
calculate_dividend_yield	Calculate dividend yield: annual dividends per share divided by share price — the cash return a shareholder receives from dividends. Formula: Dividend Yield = Annual Dividends Per Share / Share Price. WHEN TO USE: Use to compare income return against bond yields or peer dividend policies; a yield far above peers can signal a depressed price or unsustainable payout. WHEN NOT TO USE: Do NOT annualise a one-off special dividend as if it were regular income. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { dividend_yield: decimal (e.g. 0.035 = 3.5%), dividend_yield_pct: number (e.g. 3.5), inputs }. PARAMETERS: annual_dividends_per_share (required): Annual dividends per share, e.g. 1.58. Must be >= 0. share_price (required): Current share price, e.g. 45.00. Must be > 0.
calculate_payout_ratio	Calculate the payout ratio: dividends per share divided by earnings per share — the share of profits distributed as dividends. Formula: Payout Ratio = Dividends Per Share / EPS. WHEN TO USE: Use to judge dividend sustainability: payout above 100% means dividends exceed earnings (funded by debt or reserves). WHEN NOT TO USE: Do NOT use when EPS is negative (ratio is meaningless), and note young growth companies legitimately pay little or nothing. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { payout_ratio: decimal (e.g. 0.55 = 55%), payout_ratio_pct: number (e.g. 55.0), inputs }. PARAMETERS: dividends_per_share (required): Dividends per share in the period, e.g. 1.34. Must be >= 0. earnings_per_share (required): Earnings per share, e.g. 2.43. Must be > 0 for a meaningful ratio.