Stock Analysis on Net
Stock Analysis on Net

Axon Enterprise Inc. (NASDAQ:AXON)

This company has been moved to the archive! The financial data has not been updated since May 9, 2023.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Axon Enterprise Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Mar 31, 2023 9.79% = 4.57% × 2.14
Dec 31, 2022 11.60% = 5.16% × 2.25
Sep 30, 2022 8.48% = 5.20% × 1.63
Jun 30, 2022 11.80% = 7.29% × 1.62
Mar 31, 2022 3.80% = 2.41% × 1.58
Dec 31, 2021 -5.73% = -3.56% × 1.61
Sep 30, 2021 -1.86% = -1.26% × 1.48
Jun 30, 2021 -6.38% = -4.59% × 1.39
Mar 31, 2021 -5.31% = -3.82% × 1.39
Dec 31, 2020 -0.18% = -0.12% × 1.41
Sep 30, 2020 -4.46% = -3.12% × 1.43
Jun 30, 2020 -3.79% = -2.67% × 1.42
Mar 31, 2020 -0.26% = -0.17% × 1.57
Dec 31, 2019 0.16% = 0.10% × 1.56
Sep 30, 2019 3.02% = 1.94% × 1.56
Jun 30, 2019 3.06% = 2.00% × 1.53
Mar 31, 2019 4.72% = 3.07% × 1.54
Dec 31, 2018 6.25% = 4.06% × 1.54
Sep 30, 2018 — = — × 1.48
Jun 30, 2018 — = — × 1.43
Mar 31, 2018 — = — × 1.97

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2023 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Axon Enterprise Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Mar 31, 2023 9.79% = 10.76% × 0.42 × 2.14
Dec 31, 2022 11.60% = 12.37% × 0.42 × 2.25
Sep 30, 2022 8.48% = 9.75% × 0.53 × 1.63
Jun 30, 2022 11.80% = 14.20% × 0.51 × 1.62
Mar 31, 2022 3.80% = 4.62% × 0.52 × 1.58
Dec 31, 2021 -5.73% = -6.95% × 0.51 × 1.61
Sep 30, 2021 -1.86% = -2.37% × 0.53 × 1.48
Jun 30, 2021 -6.38% = -8.69% × 0.53 × 1.39
Mar 31, 2021 -5.31% = -7.37% × 0.52 × 1.39
Dec 31, 2020 -0.18% = -0.25% × 0.49 × 1.41
Sep 30, 2020 -4.46% = -6.37% × 0.49 × 1.43
Jun 30, 2020 -3.79% = -5.58% × 0.48 × 1.42
Mar 31, 2020 -0.26% = -0.26% × 0.64 × 1.57
Dec 31, 2019 0.16% = 0.17% × 0.63 × 1.56
Sep 30, 2019 3.02% = 3.24% × 0.60 × 1.56
Jun 30, 2019 3.06% = 3.34% × 0.60 × 1.53
Mar 31, 2019 4.72% = 5.22% × 0.59 × 1.54
Dec 31, 2018 6.25% = 6.95% × 0.58 × 1.54
Sep 30, 2018 — = — × — × 1.48
Jun 30, 2018 — = — × — × 1.43
Mar 31, 2018 — = — × — × 1.97

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2023 is the decrease in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

Axon Enterprise Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Mar 31, 2023 4.57% = 10.76% × 0.42
Dec 31, 2022 5.16% = 12.37% × 0.42
Sep 30, 2022 5.20% = 9.75% × 0.53
Jun 30, 2022 7.29% = 14.20% × 0.51
Mar 31, 2022 2.41% = 4.62% × 0.52
Dec 31, 2021 -3.56% = -6.95% × 0.51
Sep 30, 2021 -1.26% = -2.37% × 0.53
Jun 30, 2021 -4.59% = -8.69% × 0.53
Mar 31, 2021 -3.82% = -7.37% × 0.52
Dec 31, 2020 -0.12% = -0.25% × 0.49
Sep 30, 2020 -3.12% = -6.37% × 0.49
Jun 30, 2020 -2.67% = -5.58% × 0.48
Mar 31, 2020 -0.17% = -0.26% × 0.64
Dec 31, 2019 0.10% = 0.17% × 0.63
Sep 30, 2019 1.94% = 3.24% × 0.60
Jun 30, 2019 2.00% = 3.34% × 0.60
Mar 31, 2019 3.07% = 5.22% × 0.59
Dec 31, 2018 4.06% = 6.95% × 0.58
Sep 30, 2018 — = — × —
Jun 30, 2018 — = — × —
Mar 31, 2018 — = — × —

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q1 2023 is the decrease in profitability measured by net profit margin ratio.