Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
Axon Enterprise Inc. pages available for free this week:
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Axon Enterprise Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Profitability Ratios (Summary)
Axon Enterprise Inc., profitability ratios
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Gross Profit Margin
- The gross profit margin remained relatively stable over the five-year period, fluctuating slightly but maintaining a level above 57%. It started at 61.56% in 2018, decreased to a low of 57.88% in 2019, then improved to peak at 62.65% in 2021 before marginally declining to 61.23% in 2022. This indicates consistent efficiency in production or cost management relative to sales revenue.
- Operating Profit Margin
- The operating profit margin exhibited significant volatility. It began positively at 5.91% in 2018 but turned negative in 2019 and 2020, with margins of -1.2% and -2.08%, respectively. The worst performance was in 2021, with a sharp decline to -19.47%, suggesting challenges with operational costs or other expenses during that period. However, there was a marked recovery in 2022, with the operating margin rising to 7.84%, indicating improved operational efficiency or cost control.
- Net Profit Margin
- The net profit margin showed a declining trend from 6.95% in 2018 to negative values in 2020 and 2021 (-0.25% and -6.95%, respectively). This aligns with the negative operating results in those years, implying overall losses after accounting for all expenses. A significant turnaround occurred in 2022, with net margin improving sharply to 12.37%, reflecting enhanced profitability and possibly improved revenue quality or reductions in costs or taxes.
- Return on Equity (ROE)
- The return on equity reflected a pattern similar to the net profit margin. Starting at 6.25% in 2018, it declined to slightly positive or negative in 2019 and 2020 (0.16% and -0.18%), further decreasing to -5.73% in 2021. This suggests diminishing returns on shareholders' investments during this period. The return rebounded to 11.6% in 2022, which indicates a significant improvement in generating profits from equity capital.
- Return on Assets (ROA)
- Return on assets tracked closely with ROE trends, beginning at 4.06% in 2018 and decreasing sharply to near zero or negative in 2019 and 2020 (0.1% and -0.12%). The lowest point was observed in 2021 at -3.56%, implying inefficient use of assets or operational challenges. A recovery was noted in 2022, with ROA climbing to 5.16%, signaling better utilization of assets to generate earnings.
Return on Sales
Return on Investment
Gross Profit Margin
Axon Enterprise Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Gross margin | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales show a consistent and substantial upward trend over the five-year period. Beginning at approximately 420 million US dollars in 2018, sales increased each year to nearly 1.19 billion US dollars in 2022. This represents an overall strong growth trajectory in revenue generation.
- Gross Margin
- Gross margin follows a similar increasing pattern, starting at around 259 million US dollars in 2018 and rising steadily to approximately 729 million US dollars by 2022. This aligns with the increase in net sales, indicating an expanding scale of operations and higher absolute gross profits.
- Gross Profit Margin Percentage
- The gross profit margin percentage demonstrates relative stability over the years, fluctuating modestly between roughly 58% and 63%. The margin dipped slightly from 61.56% in 2018 to 57.88% in 2019 but then rebounded and maintained a range near 61% to 63%. This stability suggests that while the company has rapidly increased sales and gross profit in absolute terms, it has effectively managed costs proportionate to revenue.
- Overall Insights
- The data shows strong growth in sales and gross profit in dollar terms, reflecting successful business expansion or increased market demand. The relatively stable gross profit margin percentage implies effective cost control and consistent pricing or cost structures across the period. There is no indication of margin compression despite the significant sales growth, which may indicate operational efficiency or favorable product mix.
Operating Profit Margin
Axon Enterprise Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Income (loss) from operations | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Operating Profit Margin, Sector | ||||||
| Capital Goods | ||||||
| Operating Profit Margin, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Operating profit margin = 100 × Income (loss) from operations ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Sales
- There has been a consistent and significant increase in net sales over the five-year period. Starting from approximately 420 million US dollars in 2018, net sales rose steadily each year, reaching nearly 1.19 billion US dollars by the end of 2022. This represents almost a threefold increase, indicating strong revenue growth.
- Income (Loss) from Operations
- The income from operations exhibits considerable volatility and some concerning trends through the years. In 2018, the company reported an operating income of about 24.8 million US dollars. However, this shifted to operating losses in the subsequent three years, with the largest loss occurring in 2021, amounting to approximately 168 million US dollars. In 2022, there was a marked recovery with a return to positive operating income of about 93.3 million US dollars.
- Operating Profit Margin
- The operating profit margin reflects the trends seen in income from operations and shows a fluctuating profitability profile. In 2018, the margin was positive at nearly 6%. The margin turned negative in 2019 and continued to deteriorate, reaching a low point of nearly -19.5% in 2021, aligning with the highest operational loss in that year. In 2022, the margin rebounded strongly to 7.84%, surpassing the initial 2018 margin and signaling improved operational efficiency and profitability.
- Summary of Trends
- Despite robust and rising net sales over the period, operational profitability was inconsistent, with substantial losses between 2019 and 2021. The significant decline in operating income and margins in 2020 and 2021 indicate potential challenges related to cost management, pricing, or other operational issues during that timeframe. The recovery in 2022, both in absolute income from operations and operating profit margin, suggests effective corrective measures or business improvements that led to a return to profitability after several years of negative results. Overall, the company's financial performance evolved from healthy growth with moderate profit to a phase of operational losses, followed by a strong recovery in the most recent year.
Net Profit Margin
Axon Enterprise Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Net Profit Margin, Sector | ||||||
| Capital Goods | ||||||
| Net Profit Margin, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Net profit margin = 100 × Net income (loss) ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income experienced significant fluctuations over the given period. It started at $29,205 thousand in 2018, dropped sharply to $882 thousand in 2019, and turned negative in 2020 with a loss of $1,724 thousand. The loss deepened substantially in 2021 to $60,018 thousand. However, a strong recovery was observed in 2022, with net income rising dramatically to $147,139 thousand.
- Net Sales
- Net sales showed consistent and robust growth throughout the period. Sales increased from $420,068 thousand in 2018 to $530,860 thousand in 2019, then continued to rise steadily each year reaching $1,189,935 thousand by 2022. This indicates an expanding revenue base over the five-year period.
- Net Profit Margin
- The net profit margin mirrored the volatility seen in net income. It began at 6.95% in 2018, dropped sharply to 0.17% in 2019, and fell into negative territory in 2020 with -0.25%. The margin further deteriorated in 2021 to -6.95%, indicating significant operational or other challenges during that year. In 2022, the net profit margin rebounded strongly to 12.37%, signaling improved profitability and operational efficiency.
- Overall Analysis
- The company displayed strong revenue growth but faced challenges in profitability between 2019 and 2021, as evidenced by shrinking and negative net income and profit margins. The year 2021 represented the peak of financial difficulties. The sharp turnaround in 2022, with a substantial increase in net income and profit margin, reflects a significant recovery, suggesting improved cost management, revenue quality, or other favorable factors influencing financial performance.
Return on Equity (ROE)
Axon Enterprise Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) | ||||||
| Stockholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| ROE, Sector | ||||||
| Capital Goods | ||||||
| ROE, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss)
- Over the five-year period, net income exhibited considerable volatility. Beginning with a positive value of $29,205 thousand in 2018, the net income sharply declined to $882 thousand in 2019 and then shifted to a loss of $1,724 thousand in 2020. This downward trend intensified in 2021, with a significant loss of $60,018 thousand. However, in 2022, there was a substantial recovery resulting in a remarkable net income of $147,139 thousand, indicating a strong turnaround in profitability.
- Stockholders’ Equity
- Stockholders’ equity consistently increased throughout the five-year span, reflecting a strengthening equity base. Starting at $467,324 thousand in 2018, equity rose year-over-year to reach $1,268,491 thousand by the end of 2022. The most notable increases occurred between 2019 and 2020, and again between 2021 and 2022, suggesting significant reinvestment or retained earnings despite fluctuations in net income.
- Return on Equity (ROE)
- The ROE followed a pattern consistent with the net income trends but reflected its percentage impact relative to equity. It began at 6.25% in 2018, dropped sharply to 0.16% in 2019, and turned negative at -0.18% in 2020. The negative trend deepened in 2021 to -5.73%, coinciding with the sizable net loss for that year. In 2022, the ROE rebounded strongly to 11.6%, surpassing the initial value in 2018, indicative of improved profitability efficiency in utilizing shareholders' equity.
Return on Assets (ROA)
Axon Enterprise Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| ROA, Sector | ||||||
| Capital Goods | ||||||
| ROA, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income exhibited significant volatility over the observed period. Starting with a positive income of $29,205 thousand in 2018, it sharply declined to $882 thousand in 2019. The trend continued downward into a slight loss of $1,724 thousand in 2020 and a substantial loss of $60,018 thousand in 2021. However, the final year showed a remarkable recovery with net income rising to $147,139 thousand in 2022, indicating a strong turnaround.
- Total Assets
- Total assets demonstrated consistent growth across all years. The asset base increased from $719,540 thousand in 2018 to $2,851,894 thousand in 2022. The growth was notably substantial in 2020 and continued into 2021 and 2022, reflecting significant expansion or investment activities during this period.
- Return on Assets (ROA)
- ROA followed a pattern aligned with net income trends. Initially, it was positive at 4.06% in 2018 but dropped dramatically to 0.1% in 2019. The ratio turned negative in 2020 (-0.12%) and further deteriorated to -3.56% in 2021, indicating inefficient use of assets or operational challenges during these years. In 2022, ROA sharply improved to 5.16%, surpassing the 2018 level and highlighting enhanced asset profitability.