Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Axon Enterprise Inc., ROIC 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 operating profit after taxes (NOPAT)1 | 326,174) | 38,523) | 51,762) | 17,857) | 78,057) | |
| Invested capital2 | 1,607,800) | 1,262,920) | 722,746) | 500,291) | 631,660) | |
| Performance Ratio | ||||||
| ROIC3 | 20.29% | 3.05% | 7.16% | 3.57% | 12.36% | |
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Boeing Co. | -5.73% | -5.36% | -17.44% | -3.49% | — | |
| Caterpillar Inc. | 13.36% | 12.38% | 6.44% | 11.83% | — | |
| Cummins Inc. | 10.36% | 14.75% | 11.55% | 17.13% | — | |
| Eaton Corp. plc | 8.00% | 7.84% | 5.61% | 7.87% | — | |
| General Electric Co. | 2.73% | -2.53% | 5.22% | 2.37% | — | |
| Honeywell International Inc. | 11.54% | 12.33% | 10.85% | 15.49% | — | |
| Lockheed Martin Corp. | 21.60% | 22.51% | 25.67% | 26.53% | — | |
| RTX Corp. | 4.11% | 4.41% | -1.38% | 7.00% | — | |
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 NOPAT. See details »
2 Invested capital. See details »
3 2022 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 326,174 ÷ 1,607,800 = 20.29%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Axon Enterprise Inc. ROIC deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Decomposition of ROIC
Axon Enterprise Inc., decomposition of ROIC
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 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the increase in return on invested capital (ROIC) over 2022 year is the increase in profitability measured by operating profit margin (OPM) ratio.
Operating Profit Margin (OPM)
Axon Enterprise Inc., OPM 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 operating profit after taxes (NOPAT)1 | 326,174) | 38,523) | 51,762) | 17,857) | 78,057) | |
| Add: Cash operating taxes2 | 27,888) | (851) | 12,034) | 9,266) | 7,666) | |
| Net operating profit before taxes (NOPBT) | 354,062) | 37,672) | 63,795) | 27,123) | 85,723) | |
| Net sales | 1,189,935) | 863,381) | 681,003) | 530,860) | 420,068) | |
| Add: Increase (decrease) in deferred revenue | 156,728) | 176,131) | 69,381) | 24,367) | 56,151) | |
| Adjusted net sales | 1,346,663) | 1,039,512) | 750,384) | 555,227) | 476,219) | |
| Profitability Ratio | ||||||
| OPM3 | 26.29% | 3.62% | 8.50% | 4.88% | 18.00% | |
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Boeing Co. | -3.49% | -3.17% | -20.02% | -1.80% | — | |
| Caterpillar Inc. | 17.38% | 18.88% | 11.93% | 16.28% | — | |
| Cummins Inc. | 11.71% | 13.19% | 12.82% | 13.49% | — | |
| Eaton Corp. plc | 14.81% | 15.90% | 11.40% | 13.19% | — | |
| General Electric Co. | 4.46% | -2.35% | 12.65% | 6.66% | — | |
| Honeywell International Inc. | 19.83% | 21.58% | 20.26% | 21.22% | — | |
| Lockheed Martin Corp. | 11.60% | 11.85% | 13.19% | 12.87% | — | |
| RTX Corp. | 10.88% | 9.65% | -1.08% | 12.79% | — | |
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 NOPAT. See details »
2 Cash operating taxes. See details »
3 2022 Calculation
OPM = 100 × NOPBT ÷ Adjusted net sales
= 100 × 354,062 ÷ 1,346,663 = 26.29%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Axon Enterprise Inc. OPM deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Turnover of Capital (TO)
Axon Enterprise Inc., TO 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 sales | 1,189,935) | 863,381) | 681,003) | 530,860) | 420,068) | |
| Add: Increase (decrease) in deferred revenue | 156,728) | 176,131) | 69,381) | 24,367) | 56,151) | |
| Adjusted net sales | 1,346,663) | 1,039,512) | 750,384) | 555,227) | 476,219) | |
| Invested capital1 | 1,607,800) | 1,262,920) | 722,746) | 500,291) | 631,660) | |
| Efficiency Ratio | ||||||
| TO2 | 0.84 | 0.82 | 1.04 | 1.11 | 0.75 | |
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Boeing Co. | 1.31 | 1.26 | 1.22 | 2.15 | — | |
| Caterpillar Inc. | 1.03 | 0.87 | 0.72 | 0.92 | — | |
| Cummins Inc. | 1.25 | 1.38 | 1.14 | 1.56 | — | |
| Eaton Corp. plc | 0.67 | 0.67 | 0.65 | 0.73 | — | |
| General Electric Co. | 1.10 | 0.99 | 0.63 | 0.67 | — | |
| Honeywell International Inc. | 0.76 | 0.72 | 0.67 | 0.86 | — | |
| Lockheed Martin Corp. | 2.48 | 2.34 | 2.33 | 2.33 | — | |
| RTX Corp. | 0.59 | 0.56 | 0.49 | 0.75 | — | |
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 Invested capital. See details »
2 2022 Calculation
TO = Adjusted net sales ÷ Invested capital
= 1,346,663 ÷ 1,607,800 = 0.84
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Axon Enterprise Inc. TO deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Effective Cash Tax Rate (CTR)
Axon Enterprise Inc., CTR 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 operating profit after taxes (NOPAT)1 | 326,174) | 38,523) | 51,762) | 17,857) | 78,057) | |
| Add: Cash operating taxes2 | 27,888) | (851) | 12,034) | 9,266) | 7,666) | |
| Net operating profit before taxes (NOPBT) | 354,062) | 37,672) | 63,795) | 27,123) | 85,723) | |
| Tax Rate | ||||||
| CTR3 | 7.88% | -2.26% | 18.86% | 34.16% | 8.94% | |
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 25.48% | 24.33% | 25.06% | 21.38% | — | |
| Cummins Inc. | 28.93% | 18.99% | 21.24% | 18.60% | — | |
| Eaton Corp. plc | 19.89% | 26.02% | 24.39% | 17.70% | — | |
| General Electric Co. | 44.47% | — | 34.06% | 47.14% | — | |
| Honeywell International Inc. | 23.25% | 20.13% | 20.56% | 15.05% | — | |
| Lockheed Martin Corp. | 24.95% | 18.89% | 16.51% | 11.49% | — | |
| RTX Corp. | 36.10% | 18.64% | — | 26.56% | — | |
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 NOPAT. See details »
2 Cash operating taxes. See details »
3 2022 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 27,888 ÷ 354,062 = 7.88%
4 Click competitor name to see calculations.
| Tax rate | Description | The company |
|---|---|---|
| CTR | Effective cash tax rate on operating income. | Axon Enterprise Inc. CTR decreased from 2020 to 2021 but then slightly increased from 2021 to 2022. |