Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Aggregate Accruals
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Long-term Activity Ratios (Summary)
Axon Enterprise Inc., long-term (investment) activity ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
The analysis of the provided financial ratios over the five-year period reveals several noteworthy trends and fluctuations.
- Net Fixed Asset Turnover
- This ratio demonstrates a sharp decline from 11.09 in 2018 to 6.46 in 2020, followed by a relatively stable period with minor fluctuations, ending at 7.01 in 2022. The initial high values suggest strong efficiency in generating sales from fixed assets, but the significant decline indicates reduced productivity or increased asset base without a commensurate increase in revenues during the middle years.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- When considering the right-of-use assets, the turnover ratio shows a consistent decline from 11.09 in 2018 to 5.33 in 2020, then remains relatively stable with a slight increase to 5.71 by 2022. The inclusion of leased assets lowers the ratio values across the board, reflecting a higher asset base due to lease capitalization, which somewhat dilutes asset turnover but still follows the downward trend seen in the standard net fixed asset turnover.
- Total Asset Turnover
- The total asset turnover ratio exhibits a decreasing trend overall, starting at 0.58 in 2018, peaking at 0.63 in 2019, and then steadily declining to 0.42 by 2022. This trend suggests that the company has become less efficient in using its total assets to generate revenue over the observed period.
- Equity Turnover
- Equity turnover begins at 0.90 in 2018, increases slightly to 0.98 in 2019, then decreases notably to 0.70 in 2020, before recovering to 0.94 in 2022. This pattern reflects fluctuations in how effectively the firm is leveraging shareholders' equity to produce sales, with a dip in 2020 possibly linked to changes in equity levels or revenue variations, followed by partial recovery by the end of the period.
Net Fixed Asset Turnover
Axon Enterprise Inc., net fixed asset turnover 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 | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Capital Goods | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | ||||||
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
Net fixed asset turnover = Net sales ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals notable trends in key performance metrics over the five-year period.
- Net Sales
- Net sales exhibit a consistent and robust upward trajectory from 2018 to 2022. Starting at approximately $420 million in 2018, net sales increased steadily each year, reaching nearly $1.19 billion by the end of 2022. This represents an overall growth exceeding 180% over the five years, indicating strong revenue expansion.
- Property and Equipment, Net
- The net value of property and equipment shows a significant rise across the period. The asset base increased from about $38 million in 2018 to nearly $170 million by 2022. The growth rate accelerated notably from 2019 onwards, with a major leap observed in 2020. This suggests considerable capital investment activities or asset acquisitions during this timeframe.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio, which measures efficiency in utilizing fixed assets to generate sales, displayed a declining trend from 2018 through 2021, dropping from 11.09 to 6.24. However, in 2022, the ratio showed a slight recovery, rising to 7.01. The initial decreases suggest that asset growth outpaced sales growth during most of the period, leading to less efficient use of fixed assets. The partial rebound in the final year may indicate improved asset utilization or higher sales relative to asset levels.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Axon Enterprise Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Property and equipment, net | ||||||
| Operating lease assets | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Capital Goods | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | ||||||
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The data reveals a consistent upward trend in net sales over the five-year period. Starting from US$420,068 thousand in 2018, net sales steadily increased each year, reaching US$1,189,935 thousand by the end of 2022. This indicates significant revenue growth, more than doubling within the observed timeframe.
Property and equipment, net (including operating lease, right-of-use asset), also show a marked increase. The values rose from US$37,893 thousand in 2018 to US$208,213 thousand in 2022. This growth suggests substantial investment in fixed assets or leasing arrangements, with a particularly sharp increase observed between 2019 and 2020.
The net fixed asset turnover ratio, which measures the efficiency of using fixed assets to generate sales, exhibits a declining trend from 2018 to 2020, dropping from 11.09 to 5.33. It remains relatively stable in 2021 before slightly improving to 5.71 in 2022. This decline implies that while net sales have increased, the company's fixed assets have grown at a faster rate, reducing the efficiency of asset utilization over most of the period. The slight recovery in 2022 may indicate improved management or utilization of fixed assets.
- Summary of Key Trends
-
- Net Sales
- Consistent and robust growth, more than doubling from 2018 to 2022.
- Property and Equipment
- Significant increases, particularly from 2019 to 2020, reflecting increased asset base.
- Net Fixed Asset Turnover
- Decreased efficiency in asset utilization through 2020, stabilizing and slightly improving by 2022.
Overall, the company demonstrates strong top-line growth accompanied by increased investment in fixed assets. However, the decrease in fixed asset turnover signals a need for improved asset utilization to maintain operational efficiency as asset base expands.
Total Asset Turnover
Axon Enterprise Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Total Asset Turnover, Sector | ||||||
| Capital Goods | ||||||
| Total Asset Turnover, Industry | ||||||
| Industrials | ||||||
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
Total asset turnover = Net sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- There is a consistent upward trend in net sales over the period from 2018 to 2022. Sales increased from $420,068 thousand in 2018 to $1,189,935 thousand in 2022, representing a substantial growth. The growth rate appears to accelerate, especially notable between 2021 and 2022.
- Total Assets
- Total assets also show a steady and significant increase throughout the five years. The value rose from $719,540 thousand in 2018 to $2,851,894 thousand in 2022. This expansion suggests considerable asset accumulation and investment over the period, especially marked between 2021 and 2022.
- Total Asset Turnover
- The total asset turnover ratio declined gradually from 0.58 in 2018 to 0.42 in 2022. This indicates that despite the increase in net sales, the efficiency with which assets generate revenue diminished over time. The decreasing ratio reflects that asset growth has outpaced revenue growth, possibly indicating less efficient utilization of assets or a shift in asset composition.
- Overall Analysis
- While both net sales and total assets have demonstrated strong growth, the declining asset turnover ratio suggests the company’s asset base is expanding faster than sales. This could imply potential inefficiencies or strategic investments that have not yet translated fully into proportional revenue gains. Monitoring asset utilization and ensuring that asset growth contributes effectively to sales will be important for future performance assessment.
Equity Turnover
Axon Enterprise Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| Equity Turnover, Sector | ||||||
| Capital Goods | ||||||
| Equity Turnover, Industry | ||||||
| Industrials | ||||||
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
Equity turnover = Net sales ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals notable trends in net sales, stockholders' equity, and equity turnover over the five-year period from 2018 to 2022.
- Net Sales
- Net sales demonstrated consistent and significant growth each year. Starting at approximately 420 million US dollars in 2018, sales increased steadily to nearly 1.19 billion US dollars by the end of 2022. This represents almost a threefold increase over five years, indicating strong revenue expansion and market demand.
- Stockholders’ Equity
- Stockholders’ equity showed a generally upward trajectory throughout the period, increasing from about 467 million US dollars in 2018 to approximately 1.27 billion US dollars in 2022. The most notable rise occurred between 2019 and 2020, where equity nearly doubled, suggesting significant capital injections, retained earnings, or asset revaluations occurred during that interval. The moderate but steady increases in subsequent years further reinforced the company’s growing equity base.
- Equity Turnover
- Equity turnover, which measures efficiency in generating sales from shareholders’ equity, fluctuated over the period. Initially, the ratio increased from 0.9 in 2018 to 0.98 in 2019, indicating improved equity utilization. However, it declined sharply to 0.7 in 2020, followed by gradual recovery to 0.82 in 2021 and 0.94 in 2022. These variations suggest the rapid equity growth in 2020 outpaced sales growth, reducing turnover efficiency temporarily, but the company has been restoring equity utilization efficiency in recent years.
Overall, the data reflects robust growth in net sales and stockholders’ equity, with fluctuations in equity turnover indicative of dynamic balance between capital structure expansions and revenue generation efficiency. The company appears to be strengthening its financial position while improving asset utilization following a period of adjustment.