Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Axon Enterprise Inc., solvency 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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Axon Enterprise Inc. debt to equity ratio (including operating lease liability) deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Axon Enterprise Inc. debt to capital ratio (including operating lease liability) deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Axon Enterprise Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Axon Enterprise Inc. financial leverage ratio increased from 2020 to 2021 and from 2021 to 2022. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Axon Enterprise Inc. interest coverage ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Axon Enterprise Inc. fixed charge coverage ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Debt to Equity
Axon Enterprise Inc., debt to equity 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) | ||||||
| Convertible notes, net | 673,967) | —) | —) | —) | —) | |
| Total debt | 673,967) | —) | —) | —) | —) | |
| Stockholders’ equity | 1,268,491) | 1,047,849) | 976,255) | 543,495) | 467,324) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.53 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 2.33 | 2.29 | 2.42 | 2.58 | — | |
| Cummins Inc. | 0.88 | 0.49 | 0.52 | 0.32 | — | |
| Eaton Corp. plc | 0.51 | 0.52 | 0.54 | 0.52 | — | |
| General Electric Co. | 0.89 | 0.87 | 2.11 | 3.21 | — | |
| Honeywell International Inc. | 1.17 | 1.06 | 1.28 | 0.87 | — | |
| Lockheed Martin Corp. | 1.68 | 1.07 | 2.02 | 4.05 | — | |
| RTX Corp. | 0.44 | 0.43 | 0.44 | 1.04 | — | |
| Debt to Equity, Sector | ||||||
| Capital Goods | 1.30 | 1.22 | 1.68 | 1.97 | — | |
| Debt to Equity, Industry | ||||||
| Industrials | 1.30 | 1.22 | 1.68 | 1.79 | — | |
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 2022 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 673,967 ÷ 1,268,491 = 0.53
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. |
Debt to Equity (including Operating Lease Liability)
Axon Enterprise Inc., debt to equity (including operating lease liability) 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) | ||||||
| Convertible notes, net | 673,967) | —) | —) | —) | —) | |
| Total debt | 673,967) | —) | —) | —) | —) | |
| Current operating lease liabilities (classified in Other current liabilities) | 6,357) | 6,540) | 5,431) | 3,817) | —) | |
| Long-term operating lease liabilities | 37,143) | 20,439) | 18,952) | 6,792) | —) | |
| Total debt (including operating lease liability) | 717,467) | 26,979) | 24,383) | 10,609) | —) | |
| Stockholders’ equity | 1,268,491) | 1,047,849) | 976,255) | 543,495) | 467,324) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.57 | 0.03 | 0.02 | 0.02 | 0.00 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 2.37 | 2.33 | 2.46 | 2.62 | — | |
| Cummins Inc. | 0.93 | 0.54 | 0.57 | 0.38 | — | |
| Eaton Corp. plc | 0.54 | 0.55 | 0.57 | 0.55 | — | |
| General Electric Co. | 0.96 | 0.94 | 2.20 | 3.32 | — | |
| Honeywell International Inc. | 1.23 | 1.11 | 1.32 | 0.90 | — | |
| Lockheed Martin Corp. | 1.81 | 1.19 | 2.21 | 4.40 | — | |
| RTX Corp. | 0.47 | 0.46 | 0.47 | 1.11 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 1.36 | 1.28 | 1.75 | 2.06 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | 1.45 | 1.36 | 1.83 | 1.89 | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 717,467 ÷ 1,268,491 = 0.57
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Axon Enterprise Inc. debt to equity ratio (including operating lease liability) deteriorated from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital
Axon Enterprise Inc., debt to capital 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) | ||||||
| Convertible notes, net | 673,967) | —) | —) | —) | —) | |
| Total debt | 673,967) | —) | —) | —) | —) | |
| Stockholders’ equity | 1,268,491) | 1,047,849) | 976,255) | 543,495) | 467,324) | |
| Total capital | 1,942,458) | 1,047,849) | 976,255) | 543,495) | 467,324) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.35 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Boeing Co. | 1.39 | 1.35 | 1.40 | 1.46 | — | |
| Caterpillar Inc. | 0.70 | 0.70 | 0.71 | 0.72 | — | |
| Cummins Inc. | 0.47 | 0.33 | 0.34 | 0.24 | — | |
| Eaton Corp. plc | 0.34 | 0.34 | 0.35 | 0.34 | — | |
| General Electric Co. | 0.47 | 0.47 | 0.68 | 0.76 | — | |
| Honeywell International Inc. | 0.54 | 0.51 | 0.56 | 0.46 | — | |
| Lockheed Martin Corp. | 0.63 | 0.52 | 0.67 | 0.80 | — | |
| RTX Corp. | 0.31 | 0.30 | 0.31 | 0.51 | — | |
| Debt to Capital, Sector | ||||||
| Capital Goods | 0.57 | 0.55 | 0.63 | 0.66 | — | |
| Debt to Capital, Industry | ||||||
| Industrials | 0.57 | 0.55 | 0.63 | 0.64 | — | |
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
Debt to capital = Total debt ÷ Total capital
= 673,967 ÷ 1,942,458 = 0.35
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. |
Debt to Capital (including Operating Lease Liability)
Axon Enterprise Inc., debt to capital (including operating lease liability) 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) | ||||||
| Convertible notes, net | 673,967) | —) | —) | —) | —) | |
| Total debt | 673,967) | —) | —) | —) | —) | |
| Current operating lease liabilities (classified in Other current liabilities) | 6,357) | 6,540) | 5,431) | 3,817) | —) | |
| Long-term operating lease liabilities | 37,143) | 20,439) | 18,952) | 6,792) | —) | |
| Total debt (including operating lease liability) | 717,467) | 26,979) | 24,383) | 10,609) | —) | |
| Stockholders’ equity | 1,268,491) | 1,047,849) | 976,255) | 543,495) | 467,324) | |
| Total capital (including operating lease liability) | 1,985,958) | 1,074,828) | 1,000,638) | 554,104) | 467,324) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.36 | 0.03 | 0.02 | 0.02 | 0.00 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 1.37 | 1.34 | 1.39 | 1.43 | — | |
| Caterpillar Inc. | 0.70 | 0.70 | 0.71 | 0.72 | — | |
| Cummins Inc. | 0.48 | 0.35 | 0.36 | 0.28 | — | |
| Eaton Corp. plc | 0.35 | 0.36 | 0.36 | 0.35 | — | |
| General Electric Co. | 0.49 | 0.49 | 0.69 | 0.77 | — | |
| Honeywell International Inc. | 0.55 | 0.53 | 0.57 | 0.47 | — | |
| Lockheed Martin Corp. | 0.64 | 0.54 | 0.69 | 0.81 | — | |
| RTX Corp. | 0.32 | 0.31 | 0.32 | 0.53 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 0.58 | 0.56 | 0.64 | 0.67 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.59 | 0.58 | 0.65 | 0.65 | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 717,467 ÷ 1,985,958 = 0.36
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Axon Enterprise Inc. debt to capital ratio (including operating lease liability) deteriorated from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets
Axon Enterprise Inc., debt to assets 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) | ||||||
| Convertible notes, net | 673,967) | —) | —) | —) | —) | |
| Total debt | 673,967) | —) | —) | —) | —) | |
| Total assets | 2,851,894) | 1,688,210) | 1,381,023) | 845,639) | 719,540) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.24 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Boeing Co. | 0.42 | 0.42 | 0.42 | 0.20 | — | |
| Caterpillar Inc. | 0.45 | 0.46 | 0.47 | 0.48 | — | |
| Cummins Inc. | 0.26 | 0.18 | 0.18 | 0.12 | — | |
| Eaton Corp. plc | 0.25 | 0.25 | 0.25 | 0.25 | — | |
| General Electric Co. | 0.17 | 0.18 | 0.30 | 0.34 | — | |
| Honeywell International Inc. | 0.31 | 0.30 | 0.35 | 0.27 | — | |
| Lockheed Martin Corp. | 0.29 | 0.23 | 0.24 | 0.27 | — | |
| RTX Corp. | 0.20 | 0.20 | 0.20 | 0.31 | — | |
| Debt to Assets, Sector | ||||||
| Capital Goods | 0.28 | 0.27 | 0.31 | 0.31 | — | |
| Debt to Assets, Industry | ||||||
| Industrials | 0.29 | 0.29 | 0.32 | 0.32 | — | |
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
Debt to assets = Total debt ÷ Total assets
= 673,967 ÷ 2,851,894 = 0.24
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. |
Debt to Assets (including Operating Lease Liability)
Axon Enterprise Inc., debt to assets (including operating lease liability) 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) | ||||||
| Convertible notes, net | 673,967) | —) | —) | —) | —) | |
| Total debt | 673,967) | —) | —) | —) | —) | |
| Current operating lease liabilities (classified in Other current liabilities) | 6,357) | 6,540) | 5,431) | 3,817) | —) | |
| Long-term operating lease liabilities | 37,143) | 20,439) | 18,952) | 6,792) | —) | |
| Total debt (including operating lease liability) | 717,467) | 26,979) | 24,383) | 10,609) | —) | |
| Total assets | 2,851,894) | 1,688,210) | 1,381,023) | 845,639) | 719,540) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.25 | 0.02 | 0.02 | 0.01 | 0.00 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 0.43 | 0.43 | 0.43 | 0.21 | — | |
| Caterpillar Inc. | 0.46 | 0.46 | 0.48 | 0.49 | — | |
| Cummins Inc. | 0.28 | 0.19 | 0.20 | 0.15 | — | |
| Eaton Corp. plc | 0.26 | 0.27 | 0.27 | 0.27 | — | |
| General Electric Co. | 0.19 | 0.19 | 0.31 | 0.35 | — | |
| Honeywell International Inc. | 0.33 | 0.32 | 0.36 | 0.28 | — | |
| Lockheed Martin Corp. | 0.32 | 0.26 | 0.26 | 0.29 | — | |
| RTX Corp. | 0.21 | 0.21 | 0.21 | 0.33 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 0.29 | 0.29 | 0.32 | 0.32 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.33 | 0.32 | 0.35 | 0.34 | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 717,467 ÷ 2,851,894 = 0.25
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Axon Enterprise Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Financial Leverage
Axon Enterprise Inc., financial leverage 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) | ||||||
| Total assets | 2,851,894) | 1,688,210) | 1,381,023) | 845,639) | 719,540) | |
| Stockholders’ equity | 1,268,491) | 1,047,849) | 976,255) | 543,495) | 467,324) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.25 | 1.61 | 1.41 | 1.56 | 1.54 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 5.16 | 5.02 | 5.11 | 5.38 | — | |
| Cummins Inc. | 3.38 | 2.80 | 2.81 | 2.63 | — | |
| Eaton Corp. plc | 2.06 | 2.07 | 2.13 | 2.04 | — | |
| General Electric Co. | 5.16 | 4.93 | 7.13 | 9.40 | — | |
| Honeywell International Inc. | 3.73 | 3.47 | 3.68 | 3.17 | — | |
| Lockheed Martin Corp. | 5.71 | 4.64 | 8.43 | 15.20 | — | |
| RTX Corp. | 2.19 | 2.21 | 2.25 | 3.34 | — | |
| Financial Leverage, Sector | ||||||
| Capital Goods | 4.64 | 4.46 | 5.39 | 6.40 | — | |
| Financial Leverage, Industry | ||||||
| Industrials | 4.44 | 4.27 | 5.25 | 5.63 | — | |
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
Financial leverage = Total assets ÷ Stockholders’ equity
= 2,851,894 ÷ 1,268,491 = 2.25
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Axon Enterprise Inc. financial leverage ratio increased from 2020 to 2021 and from 2021 to 2022. |
Interest Coverage
Axon Enterprise Inc., interest coverage 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) | 147,139) | (60,018) | (1,724) | 882) | 29,205) | |
| Add: Income tax expense | 49,379) | (81,357) | (4,567) | 1,188) | (1,101) | |
| Add: Interest expense | 488) | 28) | 55) | 46) | 86) | |
| Earnings before interest and tax (EBIT) | 197,006) | (141,347) | (6,236) | 2,116) | 28,190) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 403.70 | -5,048.11 | -113.38 | 46.00 | 327.79 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Boeing Co. | -0.98 | -0.88 | -5.71 | -2.19 | — | |
| Caterpillar Inc. | 20.80 | 17.88 | 8.80 | 19.62 | — | |
| Cummins Inc. | 15.17 | 25.78 | 24.38 | 27.00 | — | |
| Eaton Corp. plc | 21.22 | 21.11 | 12.72 | 11.98 | — | |
| General Electric Co. | 1.88 | -0.96 | 2.59 | 1.27 | — | |
| Honeywell International Inc. | 16.41 | 22.09 | 17.75 | 22.17 | — | |
| Lockheed Martin Corp. | 11.72 | 14.27 | 14.93 | 12.09 | — | |
| RTX Corp. | 5.64 | 4.71 | -0.65 | 5.65 | — | |
| Interest Coverage, Sector | ||||||
| Capital Goods | 5.13 | 4.30 | 2.25 | 5.14 | — | |
| Interest Coverage, Industry | ||||||
| Industrials | 5.71 | 6.21 | 2.23 | 4.59 | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 197,006 ÷ 488 = 403.70
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Axon Enterprise Inc. interest coverage ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Fixed Charge Coverage
Axon Enterprise Inc., fixed charge coverage 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) | 147,139) | (60,018) | (1,724) | 882) | 29,205) | |
| Add: Income tax expense | 49,379) | (81,357) | (4,567) | 1,188) | (1,101) | |
| Add: Interest expense | 488) | 28) | 55) | 46) | 86) | |
| Earnings before interest and tax (EBIT) | 197,006) | (141,347) | (6,236) | 2,116) | 28,190) | |
| Add: Operating lease expense | 8,703) | 7,495) | 6,757) | 4,627) | 4,200) | |
| Earnings before fixed charges and tax | 205,709) | (133,852) | 521) | 6,743) | 32,390) | |
| Interest expense | 488) | 28) | 55) | 46) | 86) | |
| Operating lease expense | 8,703) | 7,495) | 6,757) | 4,627) | 4,200) | |
| Fixed charges | 9,191) | 7,523) | 6,812) | 4,673) | 4,286) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 22.38 | -17.79 | 0.08 | 1.44 | 7.56 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Boeing Co. | -0.70 | -0.64 | -4.75 | -1.19 | — | |
| Caterpillar Inc. | 14.92 | 12.73 | 6.58 | 13.01 | — | |
| Cummins Inc. | 8.85 | 10.72 | 9.60 | 9.94 | — | |
| Eaton Corp. plc | 10.01 | 10.40 | 6.24 | 7.45 | — | |
| General Electric Co. | 1.35 | -0.22 | 1.93 | 1.09 | — | |
| Honeywell International Inc. | 11.00 | 13.67 | 11.49 | 14.06 | — | |
| Lockheed Martin Corp. | 8.44 | 9.95 | 11.12 | 9.12 | — | |
| RTX Corp. | 4.40 | 3.66 | -0.22 | 4.31 | — | |
| Fixed Charge Coverage, Sector | ||||||
| Capital Goods | 3.79 | 3.26 | 1.84 | 3.80 | — | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | 3.68 | 4.04 | 1.71 | 3.07 | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 205,709 ÷ 9,191 = 22.38
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Axon Enterprise Inc. fixed charge coverage ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |