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JerBouma

Finance Toolkit

ratios_profitability

Read-onlyIdempotent

Calculate key profitability ratios including gross margin, operating margin, net margin, ROE, ROA, ROIC, and ROCE for one or multiple tickers using quarterly or annual data.

Instructions

Pre-computed profitability ratios (gross margin, operating margin, net margin, ROE, ROA, ROIC, ROCE). Requires tickers='AAPL' — use comma-separated values for multiple tickers. Use instead of raw financial statements. Supports quarterly=true and start_date/end_date.

Available indicators: get_gross_margin, get_operating_margin, get_net_profit_margin, get_interest_coverage_ratio, get_income_before_tax_profit_margin, get_effective_tax_rate, get_return_on_assets, get_return_on_equity, get_return_on_invested_capital, get_return_on_capital_employed, get_return_on_tangible_assets, get_income_quality_ratio, get_net_income_per_ebt, get_free_cash_flow_operating_cash_flow_ratio, get_EBT_to_EBIT, get_EBIT_to_revenue.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
indicatorYesName of the specific metric to calculate, e.g. 'get_asset_turnover_ratio'. Required — omitting it returns the list of available indicators.
tickersNoComma-separated ticker symbols, e.g. 'AAPL,MSFT,GOOGL'.
start_dateNoStart of the date range in YYYY-MM-DD format.2021-06-22
end_dateNoEnd of the date range in YYYY-MM-DD format.2026-06-21
quarterlyNoReturn quarterly data instead of annual when True.
benchmark_tickerNoTicker used as the market benchmark, e.g. 'SPY' or '^GSPC'.SPY
roundingNoNumber of decimal places to round results to.
growthNoReturn period-over-period growth rates instead of absolute values.
lagNoNumber of periods to lag when computing growth rates.
trailingNoNumber of trailing periods for rolling-window calculations.
dividend_adjustedNoValue for dividend_adjusted.

Output Schema

TableJSON Schema
NameRequiredDescriptionDefault
resultYes
Behavior4/5

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

Annotations already declare readOnlyHint=true and idempotentHint=true. The description adds behavioral context by stating ratios are 'pre-computed' and emphasizing tickers and date parameters, which aligns with read-only behavior. No contradictions.

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

Conciseness4/5

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

The description is a single paragraph that efficiently conveys key information. It front-loads the purpose and includes a list of available indicators. It is concise without being overly sparse.

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

Completeness4/5

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

Given the tool has 11 parameters, high schema coverage, and an output schema, the description provides sufficient context for selection. It clarifies that the tool is for profitability ratios and lists indicators. It could briefly mention parameters like benchmark_ticker or growth, but the schema covers them.

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

Parameters3/5

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

Schema description coverage is 100%, with each parameter documented. The description adds minimal extra meaning (e.g., 'Supports quarterly=true' and 'Requires tickers=AAPL'), but the schema already provides full parameter documentation. Baseline score is appropriate.

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 it provides pre-computed profitability ratios (gross margin, operating margin, ROE, etc.) with the verb 'get' implied. It distinguishes from sibling tools like ratios_efficiency and ratios_liquidity by focusing on profitability metrics.

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

Usage Guidelines4/5

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

The description advises using this tool 'instead of raw financial statements' and mentions key parameters like tickers, quarterly, and date range. It does not explicitly state when not to use, but the sibling context makes the domain clear.

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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