Return on Equity (ROE)
since 2005
Calculation
Axon Enterprise Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 11.60% | = | 100 | × | 147,139) | ÷ | 1,268,491) |
| Dec 31, 2021 | -5.73% | = | 100 | × | (60,018) | ÷ | 1,047,849) |
| Dec 31, 2020 | -0.18% | = | 100 | × | (1,724) | ÷ | 976,255) |
| Dec 31, 2019 | 0.16% | = | 100 | × | 882) | ÷ | 543,495) |
| Dec 31, 2018 | 6.25% | = | 100 | × | 29,205) | ÷ | 467,324) |
| Dec 31, 2017 | 3.11% | = | 100 | × | 5,207) | ÷ | 167,444) |
| Dec 31, 2016 | 11.46% | = | 100 | × | 17,297) | ÷ | 150,888) |
| Dec 31, 2015 | 12.70% | = | 100 | × | 19,933) | ÷ | 157,004) |
| Dec 31, 2014 | 15.43% | = | 100 | × | 19,918) | ÷ | 129,106) |
| Dec 31, 2013 | 16.84% | = | 100 | × | 18,244) | ÷ | 108,347) |
| Dec 31, 2012 | 16.88% | = | 100 | × | 14,738) | ÷ | 87,285) |
| Dec 31, 2011 | -8.54% | = | 100 | × | (7,040) | ÷ | 82,456) |
| Dec 31, 2010 | -3.73% | = | 100 | × | (4,384) | ÷ | 117,564) |
| Dec 31, 2009 | 0.00% | = | 100 | × | (1) | ÷ | 117,701) |
| Dec 31, 2008 | 3.23% | = | 100 | × | 3,637) | ÷ | 112,526) |
| Dec 31, 2007 | 12.46% | = | 100 | × | 15,026) | ÷ | 120,637) |
| Dec 31, 2006 | -4.12% | = | 100 | × | (4,088) | ÷ | 99,329) |
| Dec 31, 2005 | 1.02% | = | 100 | × | 1,063) | ÷ | 103,866) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The financial performance from 2005 to 2022 is characterized by significant volatility in net income and a substantial expansion of the stockholders' equity base. The Return on Equity (ROE) demonstrates a cyclical pattern, moving from early instability to a period of consistent profitability, followed by a sharp contraction and a recent recovery.
- Early Volatility and Instability (2005–2011)
- During this initial period, profitability was inconsistent, with net income fluctuating between losses and modest gains. ROE mirrored this instability, ranging from a low of -8.54% in 2011 to a peak of 12.46% in 2007. This phase was marked by an inability to maintain a steady return on invested capital.
- Period of Peak Efficiency (2012–2016)
- A phase of sustained profitability occurred between 2012 and 2016. ROE reached its historical peak of 16.88% in 2012 and remained above 11% through 2016. This period represents the highest level of operational efficiency relative to equity during the analyzed timeframe, supported by consistent annual net income growth peaking near 20 million USD.
- Equity Expansion and ROE Compression (2017–2021)
- A significant shift occurred after 2016, as stockholders' equity grew aggressively from 150.8 million USD to over 1.04 billion USD by 2021. This massive increase in the equity base, coupled with declining and eventually negative net income, led to a severe compression of ROE. The ratio plummeted from 11.46% in 2016 to -5.73% in 2021, reflecting a period where capital accumulation far outpaced profit generation.
- Profitability Recovery (2022)
- The 2022 fiscal year shows a decisive reversal of the downward trend. A substantial surge in net income to 147.1 million USD resulted in a sharp recovery of ROE to 11.60%. This indicates a return to the efficiency levels observed during the 2012–2016 period, despite a significantly larger equity base of 1.27 billion USD.
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Comparison to Competitors
Axon Enterprise Inc., ROE, long-term trends, comparison to competitors
| Axon Enterprise Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 11.60% | — | 42.25% | 14.45% | 0.62% | 29.74% | 61.86% | 7.16% |
| Dec 31, 2021 | -5.73% | — | 39.37% | 13.06% | -16.17% | 29.85% | 57.62% | 5.29% |
| Dec 31, 2020 | -0.18% | — | 19.56% | 9.44% | 16.04% | 27.23% | 113.60% | -4.88% |
| Dec 31, 2019 | 0.16% | — | 41.77% | 13.75% | -17.58% | 33.22% | 199.23% | 13.25% |
| Dec 31, 2018 | 6.25% | 3,085.55% | 43.79% | 13.32% | -72.16% | 37.21% | 361.98% | 13.70% |
| Dec 31, 2017 | 3.11% | 2,309.01% | 5.50% | 17.30% | -9.00% | 9.58% | — | 15.37% |
| Dec 31, 2016 | 11.46% | 599.14% | -0.51% | 12.90% | 11.65% | 24.83% | 350.89% | 18.33% |
| Dec 31, 2015 | 12.70% | 81.70% | 14.19% | 13.03% | -6.23% | 26.08% | 116.40% | 27.81% |
| Dec 31, 2014 | 15.43% | 62.85% | 22.06% | 11.36% | 11.89% | 24.01% | 106.29% | 19.93% |
| Dec 31, 2013 | 16.84% | 30.82% | 18.21% | 11.08% | 10.00% | 22.47% | 60.61% | 17.95% |
| Dec 31, 2012 | 16.88% | 66.47% | 32.40% | 8.07% | 11.09% | 22.55% | 7,038.46% | 19.80% |
| Dec 31, 2011 | -8.54% | 114.31% | 38.25% | 18.07% | 12.15% | 19.13% | 265.23% | 22.76% |
| Dec 31, 2010 | -3.73% | 119.56% | 24.94% | 12.62% | 9.79% | 18.96% | 78.91% | 20.45% |
| Dec 31, 2009 | 0.00% | 61.65% | 10.24% | 5.65% | 9.40% | 24.34% | 73.24% | 19.08% |
| Dec 31, 2008 | 3.23% | — | 58.44% | 16.75% | 16.63% | 38.85% | 112.29% | 29.46% |
| Dec 31, 2007 | 12.46% | 45.25% | 39.86% | 19.22% | 19.22% | 26.50% | 30.93% | 19.78% |
| Dec 31, 2006 | -4.12% | 46.74% | 51.57% | 23.14% | 18.55% | 21.43% | 36.74% | 21.58% |
| Dec 31, 2005 | 1.02% | 23.26% | 33.85% | 21.31% | 14.95% | 14.71% | 23.20% | 18.06% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
Axon Enterprise Inc., ROE, long-term trends, comparison to sector (capital goods)
| Axon Enterprise Inc. | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 11.60% | 13.39% |
| Dec 31, 2021 | -5.73% | 8.48% |
| Dec 31, 2020 | -0.18% | 4.42% |
| Dec 31, 2019 | 0.16% | 18.11% |
| Dec 31, 2018 | 6.25% | 11.28% |
| Dec 31, 2017 | 3.11% | 10.13% |
| Dec 31, 2016 | 11.46% | 20.08% |
| Dec 31, 2015 | 12.70% | 10.42% |
| Dec 31, 2014 | 15.43% | 18.16% |
| Dec 31, 2013 | 16.84% | 15.14% |
| Dec 31, 2012 | 16.88% | 17.58% |
| Dec 31, 2011 | -8.54% | 19.63% |
| Dec 31, 2010 | -3.73% | 15.88% |
| Dec 31, 2009 | 0.00% | 13.47% |
| Dec 31, 2008 | 3.23% | 24.97% |
| Dec 31, 2007 | 12.46% | 22.64% |
| Dec 31, 2006 | -4.12% | 22.16% |
| Dec 31, 2005 | 1.02% | 17.27% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
Axon Enterprise Inc., ROE, long-term trends, comparison to industry (industrials)
| Axon Enterprise Inc. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 11.60% | 15.38% |
| Dec 31, 2021 | -5.73% | 15.38% |
| Dec 31, 2020 | -0.18% | 0.24% |
| Dec 31, 2019 | 0.16% | 14.56% |
| Dec 31, 2018 | 6.25% | 17.95% |
| Dec 31, 2017 | 3.11% | 18.24% |
| Dec 31, 2016 | 11.46% | 21.69% |
| Dec 31, 2015 | 12.70% | 16.11% |
| Dec 31, 2014 | 15.43% | 19.68% |
| Dec 31, 2013 | 16.84% | 16.40% |
| Dec 31, 2012 | 16.88% | 17.20% |
| Dec 31, 2011 | -8.54% | 20.10% |
| Dec 31, 2010 | -3.73% | 16.41% |
| Dec 31, 2009 | 0.00% | 12.84% |
| Dec 31, 2008 | 3.23% | 20.74% |
| Dec 31, 2007 | 12.46% | 20.36% |
| Dec 31, 2006 | -4.12% | 32.16% |
| Dec 31, 2005 | 1.02% | 7.80% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).