Common-Size Income Statement
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- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Aggregate Accruals
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Axon Enterprise Inc., common-size consolidated income statement
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).
- Net sales composition
- Net sales from products showed a consistent downward trend, decreasing from 78% in 2018 to 67.35% in 2022. Conversely, net sales from services increased steadily over the same period, rising from 22% to 32.65%. This indicates a shift in the company's revenue structure with services gaining a larger share of total net sales.
- Cost structure
- The cost of product sales fluctuated but generally trended downward, moving from 33.17% in 2018 to 30.52% in 2022. The cost of service sales showed an upward trend, increasing from 5.27% to 8.24%. Overall, total cost of sales decreased from 42.12% in 2019 to 38.77% in 2022 after a peak in 2019.
- Gross margin
- Gross margin demonstrated variability, starting at 61.56% in 2018, declining to a low of 57.88% in 2019, then recovering to approximately 61% in subsequent years, finishing at 61.23% in 2022. This stability after 2019 suggests effective cost management despite changes in sales composition.
- Operating expenses
- Operating expenses as a percentage of net sales showed significant fluctuations. Sales, general and administrative expenses increased sharply from 37.35% in 2018 to a peak of 59.65% in 2021 before dropping to 33.75% in 2022. Research and development expenses remained relatively stable, ranging between 18.09% and 22.47%, peaking in 2021. Total operating expenses peaked dramatically in 2021 at 82.12% before decreasing to 53.4% in 2022, indicating a one-time increase or strategic investment that was later scaled back.
- Profitability
- Income (loss) from operations showed variability reflective of operating expense changes. Starting positive at 5.91% in 2018, it turned negative from 2019 through 2021, reaching a low of -19.47% in 2021, then rebounded strongly to 7.84% in 2022. Net income followed a similar pattern, declining from 6.95% in 2018 to negative in 2020 and 2021, then recovering to 12.37% in 2022. Income before taxes also reflected this volatility, falling significantly in 2021 but rebounding sharply in 2022.
- Interest and other income
- Interest expense remained minimal and fairly constant throughout the period. Investment interest income peaked early in 2019 at 1.33% before declining. Other income, net, increased markedly from 0.08% in 2018 to 8.32% in 2022, contributing positively to total interest and other income, which rose correspondingly to 8.68% in 2022, supporting improved profitability.
- Income tax effects
- Income tax provision and benefits fluctuated, with notable tax benefits in 2021 amounting to 9.42% of net sales, contrasting with a tax provision of -4.15% in 2022. These fluctuations influenced net income trends, particularly the recovery seen in 2022 despite increased tax provision.
- Summary
- The data reveals a strategic shift favoring services over product sales with improving cost efficiency in products but higher costs in services. The company experienced a period of elevated operating expenses and negative profitability around 2020-2021, followed by a significant recovery in 2022 driven by reduced operating expenses and increased other income. Overall, the company demonstrated resilience and adaptive cost management contributing to restored profitability by 2022.