Analysis of Solvency Ratios
Quarterly Data
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 (quarterly data)
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).
- Debt to Equity
- The debt to equity ratio is available for the two most recent periods, showing a slight decrease from 0.53 to 0.48. This indicates a modest reduction in leverage relative to shareholders’ equity.
- Debt to Equity (Including Operating Lease Liability)
- This ratio shows initial stability at a very low level (0.01 to 0.02) followed by a significant increase to 0.56 and 0.51 in the last two periods. The change suggests that operating lease liabilities have become a more prominent component of the company's debt profile recently.
- Debt to Capital
- The ratio decreased from 0.35 to 0.32 between the final two periods, aligning with the observation for debt to equity and reflecting a slight reduction in debt relative to total capital.
- Debt to Capital (Including Operating Lease Liability)
- Initially stable at very low levels (0.01 to 0.02), this ratio rose notably in the latest periods, increasing to 0.36 and then slightly declining to 0.34. This pattern parallels the trend observed in the debt to equity ratio including operating leases, indicating growing consideration of lease obligations in capital structure analysis.
- Debt to Assets
- The ratio decreased slightly from 0.24 to 0.22 in the two most recent periods, which denotes a moderate decline in the proportion of debt relative to total assets.
- Debt to Assets (Including Operating Lease Liability)
- This ratio remained stable at around 0.01 initially, then increased to 0.25 and 0.24 in the last two periods, mirroring the trend in other debt ratios inclusive of operating lease liabilities. This suggests a growing recognition of operating leases as liabilities affecting asset financing.
- Financial Leverage
- The financial leverage ratio displayed relative stability between 1.39 and 1.63 from early 2019 through 2022, followed by a marked increase to 2.25 and slightly decreasing to 2.14 in the last two periods. This jump suggests a significant rise in total assets relative to shareholders’ equity, potentially reflecting increased borrowing or asset expansion not fully matched by equity growth.
Debt Ratios
Debt to Equity
Axon Enterprise Inc., debt to equity calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Convertible notes, net | 674,724) | 673,967) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total debt | 674,724) | 673,967) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Stockholders’ equity | 1,402,995) | 1,268,491) | 1,231,313) | 1,193,651) | 1,124,789) | 1,047,849) | 1,113,903) | 1,097,699) | 1,010,904) | 976,255) | 895,153) | 869,813) | 559,590) | 543,495) | 507,647) | 488,927) | 480,539) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | 0.48 | 0.53 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 2.04 | 2.33 | 2.34 | 2.35 | 2.20 | 2.29 | 2.21 | 2.23 | 2.30 | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 0.50 | 0.51 | 0.56 | 0.59 | 0.58 | 0.52 | 0.57 | 0.79 | 0.68 | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 0.71 | 0.89 | 0.97 | 0.94 | 0.86 | 0.87 | 1.68 | 1.90 | 2.12 | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 1.13 | 1.17 | 0.96 | 1.09 | 1.05 | 1.06 | 1.19 | 1.19 | 1.19 | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 1.62 | 1.68 | 0.96 | 1.02 | 1.16 | 1.07 | 1.21 | 1.87 | 1.93 | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 0.47 | 0.44 | 0.48 | 0.45 | 0.43 | 0.43 | 0.44 | 0.44 | 0.44 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 674,724 ÷ 1,402,995 = 0.48
2 Click competitor name to see calculations.
The analysis of the financial data reveals several key trends in the company’s capital structure over the observed periods.
- Total Debt
- The total debt figures were not available until the last two reported quarters, with values of approximately US$673.97 million and US$674.72 million, respectively. This suggests either a previous lack of debt or unreported debt figures before this period. The near-constant debt level across these two quarters indicates stability in the company’s borrowing at the end of the reported timeline.
- Stockholders’ Equity
- Stockholders’ equity showed a consistent upward trend from March 31, 2019, through March 31, 2023. Starting at approximately US$480.54 million, equity increased steadily each quarter, reaching roughly US$1.40 billion by the most recent quarter. This significant growth reflects ongoing accumulation of retained earnings or capital injections, strengthening the company’s equity base substantially over the four-year span.
- Debt to Equity Ratio
- The debt to equity ratio was only reported in the last two quarters, with values of 0.53 and 0.48. This slight decrease indicates a modest improvement in the company's leverage position, as equity growth slightly outpaced the increase in debt, reducing the reliance on debt financing relative to equity.
Overall, the company demonstrates a strong and growing equity position, with relatively stable debt levels in the most recent periods. The decreasing debt to equity ratio suggests enhanced financial stability and potentially lower financial risk as the company’s equity base expands faster than its debt.
Debt to Equity (including Operating Lease Liability)
Axon Enterprise Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Convertible notes, net | 674,724) | 673,967) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total debt | 674,724) | 673,967) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term operating lease liabilities | 35,045) | 37,143) | 16,311) | 18,210) | 20,112) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total debt (including operating lease liability) | 709,769) | 711,110) | 16,311) | 18,210) | 20,112) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Stockholders’ equity | 1,402,995) | 1,268,491) | 1,231,313) | 1,193,651) | 1,124,789) | 1,047,849) | 1,113,903) | 1,097,699) | 1,010,904) | 976,255) | 895,153) | 869,813) | 559,590) | 543,495) | 507,647) | 488,927) | 480,539) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 0.51 | 0.56 | 0.01 | 0.02 | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||
| Eaton Corp. plc | 0.53 | 0.53 | 0.59 | 0.62 | 0.60 | 0.54 | 0.59 | 0.81 | 0.70 | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 0.50 | 0.46 | 0.50 | 0.47 | 0.46 | 0.45 | 0.46 | 0.46 | 0.46 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 709,769 ÷ 1,402,995 = 0.51
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in the company's capital structure and financial position over the observed period.
- Total Debt (including operating lease liability)
- The total debt figures are largely unavailable until the latter part of the dataset, where a significant increase occurs. Starting in the quarter ending March 31, 2022, the total debt is reported at approximately $20.1 million and then decreases steadily over subsequent quarters, reaching a notable low around $16.3 million by September 30, 2022. However, a substantial surge in total debt is observed by December 31, 2022, sharply rising above $711 million and remaining at comparable elevated levels through March 31, 2023. This abrupt increase indicates a major financing event or liability recognition during the last quarter of 2022.
- Stockholders’ Equity
- Stockholders’ equity shows a consistent upward trend from March 31, 2019, through March 31, 2023. Beginning around $480.5 million, equity grows steadily each quarter, with occasional periods of accelerated increase, such as from March 31, 2020, to June 30, 2020. By the first quarter of 2023, equity reaches approximately $1.40 billion, nearly tripling over the five-year span. This steady growth indicates ongoing accumulation of retained earnings, capital injections, or valuation increases contributing positively to shareholder value.
- Debt to Equity Ratio (including operating lease liability)
- The debt to equity ratio data is only available in the most recent quarters, beginning from approximately March 31, 2022. The ratio prior to the debt spike remains very low, around 0.01 to 0.02, suggesting minimal leverage relative to equity during this interval. However, following the sharp increase in debt at the end of 2022, the ratio climbs to 0.56 by December 31, 2022, then slightly decreases to 0.51 by March 31, 2023. This change signifies a marked shift in the company's leverage profile, moving from a very low level of indebtedness toward a more leveraged capital structure, while still maintaining equity as the dominant portion of financing.
Overall, the data reveals a consistent build-up of shareholder equity over the analyzed timeframe, interrupted by a dramatic rise in debt in late 2022, which materially increases financial leverage. This suggests strategic financing activities affecting the company's balance sheet structure toward the end of the period, with potential implications for risk and capital costs going forward.
Debt to Capital
Axon Enterprise Inc., debt to capital calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Convertible notes, net | 674,724) | 673,967) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total debt | 674,724) | 673,967) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Stockholders’ equity | 1,402,995) | 1,268,491) | 1,231,313) | 1,193,651) | 1,124,789) | 1,047,849) | 1,113,903) | 1,097,699) | 1,010,904) | 976,255) | 895,153) | 869,813) | 559,590) | 543,495) | 507,647) | 488,927) | 480,539) | ||||||
| Total capital | 2,077,719) | 1,942,458) | 1,231,313) | 1,193,651) | 1,124,789) | 1,047,849) | 1,113,903) | 1,097,699) | 1,010,904) | 976,255) | 895,153) | 869,813) | 559,590) | 543,495) | 507,647) | 488,927) | 480,539) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | 0.32 | 0.35 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 1.39 | 1.39 | 1.45 | 1.35 | 1.36 | 1.35 | 1.30 | 1.36 | 1.40 | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 0.67 | 0.70 | 0.70 | 0.70 | 0.69 | 0.70 | 0.69 | 0.69 | 0.70 | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 0.34 | 0.34 | 0.36 | 0.37 | 0.37 | 0.34 | 0.36 | 0.44 | 0.40 | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 0.41 | 0.47 | 0.49 | 0.48 | 0.46 | 0.47 | 0.63 | 0.65 | 0.68 | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 0.53 | 0.54 | 0.49 | 0.52 | 0.51 | 0.51 | 0.54 | 0.54 | 0.54 | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 0.62 | 0.63 | 0.49 | 0.50 | 0.54 | 0.52 | 0.55 | 0.65 | 0.66 | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 0.32 | 0.31 | 0.32 | 0.31 | 0.30 | 0.30 | 0.30 | 0.31 | 0.31 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 674,724 ÷ 2,077,719 = 0.32
2 Click competitor name to see calculations.
- Debt Trend
- The total debt data is only available for the two most recent quarters, showing figures of approximately $673.97 million and $674.72 million, indicating a relatively stable debt level during this period.
- Capital Trend
- Total capital has exhibited a generally upward trend from around $480.54 million at the first reported quarter to over $2.07 billion in the latest quarter, reflecting significant growth over the observed time span. Notable increments occurred especially from late 2021 through early 2023, suggesting substantial capital expansion during this period.
- Debt to Capital Ratio
- The debt to capital ratio is reported only for the final two quarters, registering at 0.35 and 0.32 respectively. This slight decrease indicates a marginal reduction in the proportion of debt relative to total capital, which may imply an improvement in the company's capital structure or a strategic reduction in leverage.
- Overall Financial Position
- The overarching pattern suggests that while the company’s total capital base has increased substantially, total debt levels have remained relatively constant during the most recent quarters available. This dynamic has contributed to a decrease in debt to capital ratio, signifying enhanced financial stability and potentially lower financial risk.
Debt to Capital (including Operating Lease Liability)
Axon Enterprise Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Convertible notes, net | 674,724) | 673,967) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total debt | 674,724) | 673,967) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term operating lease liabilities | 35,045) | 37,143) | 16,311) | 18,210) | 20,112) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total debt (including operating lease liability) | 709,769) | 711,110) | 16,311) | 18,210) | 20,112) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Stockholders’ equity | 1,402,995) | 1,268,491) | 1,231,313) | 1,193,651) | 1,124,789) | 1,047,849) | 1,113,903) | 1,097,699) | 1,010,904) | 976,255) | 895,153) | 869,813) | 559,590) | 543,495) | 507,647) | 488,927) | 480,539) | ||||||
| Total capital (including operating lease liability) | 2,112,764) | 1,979,601) | 1,247,624) | 1,211,861) | 1,144,901) | 1,047,849) | 1,113,903) | 1,097,699) | 1,010,904) | 976,255) | 895,153) | 869,813) | 559,590) | 543,495) | 507,647) | 488,927) | 480,539) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.34 | 0.36 | 0.01 | 0.02 | 0.02 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||
| Eaton Corp. plc | 0.35 | 0.35 | 0.37 | 0.38 | 0.37 | 0.35 | 0.37 | 0.45 | 0.41 | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 0.33 | 0.32 | 0.33 | 0.32 | 0.31 | 0.31 | 0.31 | 0.32 | 0.32 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 709,769 ÷ 2,112,764 = 0.34
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends in the company's capital structure over the periods observed.
- Total debt (including operating lease liability)
- The total debt values are not reported for most of the earlier periods, with figures appearing only from March 31, 2022, onward. During these latest periods, total debt exhibits a decreasing trend from $20,112 thousand on March 31, 2022, down to $16,311 thousand on September 30, 2022, followed by a sharp and significant increase, reaching $711,110 thousand at December 31, 2022, and slightly decreasing to approximately $709,769 thousand at March 31, 2023. This indicates a pronounced change in the company's leverage or reporting of liabilities within the recent quarters.
- Total capital (including operating lease liability)
- Total capital has shown a consistent upward trend from $480,539 thousand on March 31, 2019, to $1,976,001 thousand by December 31, 2022, and further to $2,112,764 thousand on March 31, 2023. The growth in total capital appears steady with incremental increases each quarter, reflecting expanding resources or equity base despite fluctuations in debt levels.
- Debt to capital ratio (including operating lease liability)
- The debt-to-capital ratio data is available only from March 31, 2022, onward. The ratio remains very low around 0.01 to 0.02 in the first three quarters of 2022, indicating minimal debt relative to capital. However, there is a pronounced increase in this ratio in the final quarter of 2022, reaching 0.36, and slightly declining to 0.34 by March 31, 2023. This sudden rise in leverage suggests a strategic or operational change causing the company to increase its debt significantly relative to its capital base in recent quarters.
In summary, the company exhibits a steady growth in total capital over the five-year span, while leveraging was minimal for most of the observed period. Recent quarters show a drastic escalation in debt levels and the debt-to-capital ratio, indicating a potential shift in financial strategy, increased borrowing, or changes in the balance sheet structure during late 2022 and early 2023. This development warrants further investigation into the causes, potential impact on financial risk, and the use of the additional debt.
Debt to Assets
Axon Enterprise Inc., debt to assets calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Convertible notes, net | 674,724) | 673,967) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total debt | 674,724) | 673,967) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total assets | 3,007,949) | 2,851,894) | 2,010,430) | 1,932,023) | 1,772,454) | 1,688,210) | 1,645,387) | 1,526,888) | 1,404,858) | 1,381,023) | 1,279,149) | 1,232,912) | 877,451) | 845,639) | 792,304) | 746,370) | 739,195) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | 0.22 | 0.24 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 0.41 | 0.42 | 0.42 | 0.42 | 0.43 | 0.42 | 0.43 | 0.43 | 0.42 | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 0.44 | 0.45 | 0.45 | 0.46 | 0.46 | 0.46 | 0.46 | 0.46 | 0.47 | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 0.25 | 0.25 | 0.26 | 0.28 | 0.27 | 0.25 | 0.27 | 0.33 | 0.30 | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 0.14 | 0.17 | 0.17 | 0.18 | 0.18 | 0.18 | 0.27 | 0.27 | 0.29 | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 0.32 | 0.31 | 0.28 | 0.31 | 0.31 | 0.30 | 0.33 | 0.33 | 0.34 | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 0.29 | 0.29 | 0.22 | 0.22 | 0.23 | 0.23 | 0.23 | 0.23 | 0.24 | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 0.21 | 0.20 | 0.21 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 674,724 ÷ 3,007,949 = 0.22
2 Click competitor name to see calculations.
The financial data exhibits several noteworthy trends over the periods presented, particularly concerning total assets, total debt, and the debt-to-assets ratio.
- Total Assets
- The total assets show a consistent upward trajectory throughout the entire timeline. Starting at approximately $739 million in the first quarter of 2019, assets increased steadily each quarter, culminating at about $3 billion by the first quarter of 2023. This represents a more than fourfold increase over the span of four years, indicating significant asset growth, which may reflect business expansion, increased investments, or acquisitions.
- Total Debt
- Data for total debt is only available for the last two quarters, showing values of approximately $674 million for both the fourth quarter of 2022 and the first quarter of 2023. Without earlier data points, it is not possible to determine any trends or fluctuations in total debt over the entire period. However, the level of debt in early 2023 is substantial in absolute terms.
- Debt-to-Assets Ratio
- The debt-to-assets ratio is only reported for the two most recent quarters, 0.24 and 0.22, indicating that total debt constitutes about 22% to 24% of total assets. This relatively low ratio suggests a moderate leverage level, implying the company is not heavily reliant on debt financing compared to its asset base. The marginal decline in the ratio from 0.24 to 0.22 could suggest a slight reduction in leverage or asset growth outpacing debt increases.
In summary, the dominant characteristic of the financial data is strong asset growth across the four-year period. While debt data is insufficient for a full trend analysis, the available figures paired with the debt-to-assets ratio highlight a controlled use of leverage relative to the expanding asset base. This financial profile may point to a strategic approach focused on asset accumulation while maintaining manageable debt levels.
Debt to Assets (including Operating Lease Liability)
Axon Enterprise Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Convertible notes, net | 674,724) | 673,967) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total debt | 674,724) | 673,967) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Long-term operating lease liabilities | 35,045) | 37,143) | 16,311) | 18,210) | 20,112) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total debt (including operating lease liability) | 709,769) | 711,110) | 16,311) | 18,210) | 20,112) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total assets | 3,007,949) | 2,851,894) | 2,010,430) | 1,932,023) | 1,772,454) | 1,688,210) | 1,645,387) | 1,526,888) | 1,404,858) | 1,381,023) | 1,279,149) | 1,232,912) | 877,451) | 845,639) | 792,304) | 746,370) | 739,195) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.24 | 0.25 | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||
| Eaton Corp. plc | 0.26 | 0.26 | 0.28 | 0.29 | 0.28 | 0.26 | 0.28 | 0.34 | 0.31 | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 0.22 | 0.21 | 0.22 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 709,769 ÷ 3,007,949 = 0.24
2 Click competitor name to see calculations.
- Total Assets
- The total assets show a consistent upward trend across the entire period. Starting at approximately $739 million in March 2019, assets steadily increased each quarter, reaching roughly $3.01 billion by March 2023. This growth reflects a substantial accumulation of resources, nearly quadrupling over four years, with notably accelerated increases post-2021.
- Total Debt (including operating lease liability)
- Data for total debt is missing for most periods until March 2022. From then on, values are reported from March 2022 through March 2023, showing a significant increase. Debt rose from around $20.1 million in March 2022 to more than $700 million by December 2022 and remained at approximately that level through March 2023. This sharp surge indicates new or increased borrowing or leasing obligations towards the end of the period analyzed.
- Debt to Assets Ratio (including operating lease liability)
- This ratio is only available for the last five quarters. It was very low (0.01) from March to September 2022, indicating negligible debt relative to assets. However, there is a marked increase to 0.25 in December 2022, with a slight decline to 0.24 by March 2023. This rise confirms the substantial increase in debt compared to asset value seen in the same period and indicates a change in the capital structure, suggesting higher leverage starting late 2022.
Financial Leverage
Axon Enterprise Inc., financial leverage calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Total assets | 3,007,949) | 2,851,894) | 2,010,430) | 1,932,023) | 1,772,454) | 1,688,210) | 1,645,387) | 1,526,888) | 1,404,858) | 1,381,023) | 1,279,149) | 1,232,912) | 877,451) | 845,639) | 792,304) | 746,370) | 739,195) | ||||||
| Stockholders’ equity | 1,402,995) | 1,268,491) | 1,231,313) | 1,193,651) | 1,124,789) | 1,047,849) | 1,113,903) | 1,097,699) | 1,010,904) | 976,255) | 895,153) | 869,813) | 559,590) | 543,495) | 507,647) | 488,927) | 480,539) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | 2.14 | 2.25 | 1.63 | 1.62 | 1.58 | 1.61 | 1.48 | 1.39 | 1.39 | 1.41 | 1.43 | 1.42 | 1.57 | 1.56 | 1.56 | 1.53 | 1.54 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 4.61 | 5.16 | 5.19 | 5.16 | 4.82 | 5.02 | 4.85 | 4.85 | 4.87 | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 2.04 | 2.06 | 2.14 | 2.15 | 2.12 | 2.07 | 2.14 | 2.39 | 2.27 | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 5.20 | 5.16 | 5.75 | 5.35 | 4.92 | 4.93 | 6.33 | 7.09 | 7.30 | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 3.54 | 3.73 | 3.40 | 3.55 | 3.45 | 3.47 | 3.60 | 3.56 | 3.53 | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 5.66 | 5.71 | 4.35 | 4.53 | 5.15 | 4.64 | 5.38 | 7.99 | 8.15 | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 2.22 | 2.19 | 2.25 | 2.26 | 2.20 | 2.21 | 2.23 | 2.23 | 2.24 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 3,007,949 ÷ 1,402,995 = 2.14
2 Click competitor name to see calculations.
- Total Assets
- The total assets demonstrated a consistent upward trend from March 31, 2019, through March 31, 2023. Starting at approximately $739 million, the assets steadily increased each quarter, reaching over $3 billion by the first quarter of 2023. Notably, the growth rate accelerated considerably from mid-2022 onward, with a sharp rise in the final two quarters of 2022 and the first quarter of 2023.
- Stockholders' Equity
- Stockholders’ equity also showed a general upward trajectory over the observed periods, beginning at around $480 million in March 2019 and increasing to approximately $1.4 billion by March 2023. The period between March 2020 and December 2020 saw a marked increase in equity, rising sharply from about $560 million to nearly $1 billion. However, there was a slight dip in the fourth quarter of 2021 before equity resumed its growth path. The pace of equity growth appears steadier compared to total assets, especially in the latter quarters.
- Financial Leverage
- Financial leverage fluctuated within a relatively narrow range from 2019 through most of 2021, generally staying between 1.39 and 1.62. During this time, the ratio trended slightly downward up to early 2021, indicating a modest decrease in leverage. However, starting in late 2021, the ratio began to rise significantly, reaching a peak of 2.25 by the fourth quarter of 2022 before slightly moderating to 2.14 in the first quarter of 2023. This increase in financial leverage suggests a growing reliance on debt or other liabilities relative to equity during this recent period.
- Overall Insights
- The financial data indicates that the company has experienced substantial growth in its asset base over the four-year period, with a particularly pronounced expansion in the most recent quarters. Stockholders’ equity has increased steadily, although not as sharply as total assets, resulting in a rising financial leverage ratio in the later periods. The elevated leverage ratio in 2022 and early 2023 may point to increased borrowing or liabilities, potentially to support accelerated growth or capital expenditures. This shift toward higher leverage warrants careful monitoring, as it impacts the company's financial risk profile despite the growth in equity.