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investment_analysis__payback_period

Compute the payback period, the undiscounted time to recover the initial investment from cash flows.

Instructions

[investment-analysis] Years to recover the t=0 outflow (fractional, undiscounted).

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
cashflowsYes
Behavior2/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Description mentions 'fractional, undiscounted' but no annotations exist. It omits behavioral details like handling of non-recovery, required sign conventions, or return value for edge cases.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness3/5

Is the description appropriately sized, front-loaded, and free of redundancy?

One sentence is concise but lacks essential input details. It could be improved without becoming verbose by adding param format guidance.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness2/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

Given no annotations or output schema, the description is too minimal. For a tool with one critical parameter, it fails to explain input format, assumptions, and return value, making it incomplete.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters2/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Input schema has one param 'cashflows' with 0% description coverage. The description does not explain expected structure (e.g., negative first element, positive inflows) or units, leaving the agent to infer format.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description clearly states the tool calculates years to recover initial outflow, specifying fractional and undiscounted, which distinguishes it from siblings like NPV and IRR that consider time value of money.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines2/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

No guidance on when to use this tool over alternatives such as npv, irr, or profitability_index. The description lacks context about appropriate scenarios.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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