Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Axon Enterprise Inc., long-term (investment) activity 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).
The analysis of the quarterly financial ratios reveals notable trends in the operational efficiency and asset utilization of the company over the specified periods.
- Net Fixed Asset Turnover
- This ratio exhibited a generally increasing trend from March 2019 through June 2020, peaking at 13.05 before experiencing a significant decline to around 6.1 by September 2020. Following this reduction, the ratio stabilized in the 6.1 to 7.4 range through early 2023, showing slight fluctuations but an overall moderate upward movement toward the end of the period. This indicates that the company's efficiency in generating sales from its fixed assets weakened abruptly mid-2020 but then maintained a stable level with some recovery afterward.
- Total Asset Turnover
- The total asset turnover ratio showed a modest upward movement from 0.59 in March 2019 to a peak of 0.64 in March 2020. Subsequently, there was a consistent decrease to approximately 0.48-0.49 through late 2020. The ratio then experienced minor recovery and fluctuations around the 0.51-0.53 range during 2021 and 2022, before declining again to 0.42 by the first quarter of 2023. This pattern suggests moderate volatility in the company's ability to generate revenue from all its assets, with an overall declining tendency in recent quarters.
- Equity Turnover
- The equity turnover ratio increased steadily from 0.9 in early 2019 to 1.0 by March 2020, followed by a sharp decrease to the 0.68-0.7 level during mid to late 2020. Thereafter, the ratio gradually improved throughout 2021 and 2022, reaching as high as 0.94 by the first quarter of 2023, though it displayed a slight contraction at the end of the period. This trend reflects an initially strong capacity to generate sales from shareholders' equity before a marked dip, with a subsequent recovery pointing to strengthened efficiency in equity use in recent periods.
In summary, all three turnover ratios demonstrated a notable decline around mid-2020, which may be attributable to external or internal factors impacting asset and equity efficiency. Following this period, the net fixed asset turnover stabilized at a lower level, total asset turnover showed modest volatility with a downward bias in recent quarters, and equity turnover progressively improved, suggesting partial recovery in equity utilization effectiveness.
Net Fixed Asset Turnover
Axon Enterprise Inc., net fixed asset turnover 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) | |||||||||||||||||||||||
| Net sales | 343,043) | 336,142) | 311,754) | 285,613) | 256,426) | 217,578) | 231,989) | 218,795) | 195,019) | 226,140) | 166,442) | 141,259) | 147,162) | 171,851) | 130,837) | 112,362) | 115,810) | ||||||
| Property and equipment, net | 172,674) | 169,843) | 164,160) | 157,916) | 149,505) | 138,457) | 128,808) | 119,933) | 112,119) | 105,494) | 102,718) | 45,386) | 43,065) | 43,770) | 42,592) | 40,500) | 41,347) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Net fixed asset turnover1 | 7.39 | 7.01 | 6.53 | 6.28 | 6.19 | 6.24 | 6.77 | 6.72 | 6.50 | 6.46 | 6.10 | 13.02 | 13.05 | 12.13 | 11.12 | 11.06 | 10.51 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 6.72 | 6.31 | 5.85 | 5.72 | 5.68 | 5.70 | 5.65 | 5.44 | 4.85 | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 4.91 | 4.70 | 4.62 | 4.36 | 4.18 | 3.99 | 3.84 | 3.59 | 3.32 | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 6.67 | 6.59 | 6.80 | 6.50 | 6.38 | 6.41 | 6.45 | 6.25 | 6.08 | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 5.84 | 5.08 | 5.04 | 4.83 | 4.73 | 4.55 | 4.53 | 4.45 | 4.33 | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 6.57 | 6.48 | 6.54 | 6.45 | 6.27 | 6.18 | 6.28 | 6.15 | 5.88 | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 8.33 | 8.27 | 8.48 | 8.48 | 8.70 | 8.83 | 9.05 | 9.17 | 9.15 | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 4.53 | 4.42 | 4.50 | 4.43 | 4.37 | 4.30 | 4.39 | 4.25 | 4.10 | — | — | — | — | — | — | — | — | ||||||
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
Net fixed asset turnover
= (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
÷ Property and equipment, net
= (343,043 + 336,142 + 311,754 + 285,613)
÷ 172,674 = 7.39
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited general growth over the period analyzed, increasing from approximately $115.8 million at the beginning of 2019 to $343.0 million by the first quarter of 2023. There were fluctuations within certain quarters, including a notable dip in the first half of 2020, likely influenced by external economic factors. However, sales rebounded strongly beyond that point, reaching new highs each subsequent year, with consistent quarter-over-quarter increases visible from early 2021 onward.
- Property and Equipment, Net
- The net value of property and equipment showed a steady upward trend across the timeline, more than doubling from roughly $41.3 million in early 2019 to about $172.7 million by the first quarter of 2023. A significant jump occurred midway through 2020, suggesting substantial capital investment or asset acquisition during that period. Growth persisted but at a moderated pace following this sharp increase, indicating ongoing but more stabilized asset expansion.
- Net Fixed Asset Turnover
- Net fixed asset turnover ratio experienced notable changes over the examined timeframe. Initially, the ratio increased from 10.51 in early 2019 to a peak above 13.0 in early 2020, reflecting improved efficiency in generating sales from fixed assets. Post mid-2020, the ratio declined sharply to around 6.1 and remained in the 6.0 to 7.4 range through early 2023. This decline corresponds with the significant increase in property and equipment, suggesting that asset growth outpaced sales growth during this interval. However, a gradual improvement in turnover ratio starting in late 2021 suggests recovering efficiency as sales accelerated relative to assets.
Total Asset Turnover
Axon Enterprise Inc., total asset turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net sales | 343,043) | 336,142) | 311,754) | 285,613) | 256,426) | 217,578) | 231,989) | 218,795) | 195,019) | 226,140) | 166,442) | 141,259) | 147,162) | 171,851) | 130,837) | 112,362) | 115,810) | ||||||
| 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) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Total asset turnover1 | 0.42 | 0.42 | 0.53 | 0.51 | 0.52 | 0.51 | 0.53 | 0.53 | 0.52 | 0.49 | 0.49 | 0.48 | 0.64 | 0.63 | 0.60 | 0.60 | 0.59 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | 0.52 | 0.49 | 0.45 | 0.45 | 0.45 | 0.45 | 0.43 | 0.41 | 0.38 | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 0.70 | 0.69 | 0.66 | 0.63 | 0.61 | 0.58 | 0.57 | 0.53 | 0.50 | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 0.60 | 0.59 | 0.59 | 0.56 | 0.56 | 0.58 | 0.57 | 0.52 | 0.52 | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 0.43 | 0.39 | 0.40 | 0.39 | 0.37 | 0.36 | 0.30 | 0.30 | 0.29 | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 0.60 | 0.57 | 0.58 | 0.55 | 0.54 | 0.53 | 0.54 | 0.53 | 0.51 | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 1.21 | 1.25 | 1.24 | 1.24 | 1.28 | 1.32 | 1.28 | 1.28 | 1.28 | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 0.42 | 0.42 | 0.42 | 0.41 | 0.41 | 0.40 | 0.40 | 0.39 | 0.38 | — | — | — | — | — | — | — | — | ||||||
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
Total asset turnover
= (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
÷ Total assets
= (343,043 + 336,142 + 311,754 + 285,613)
÷ 3,007,949 = 0.42
2 Click competitor name to see calculations.
- Net Sales Trends
- Net sales demonstrated a generally increasing trend over the analyzed periods, growing from approximately $116 million in the first quarter of 2019 to $343 million in the first quarter of 2023. There were fluctuations within the growth pattern, with a notable dip in mid-2020, likely indicative of external market influences during that period. However, post mid-2020, net sales recovered and exhibited robust growth, reaching new highs in 2022 and maintaining strong performance into early 2023.
- Total Assets Evolution
- Total assets showed consistent growth throughout the timeframe, starting at approximately $739 million in early 2019 and expanding significantly to around $3 billion by the first quarter of 2023. This steady increase reflects substantial asset accumulation, particularly accelerating from 2021 onward, indicating possible investments in fixed assets, acquisitions, or increased capital deployment.
- Total Asset Turnover Analysis
- Total asset turnover ratio started at 0.59 in early 2019, experienced a mild increase peaking at around 0.64 in the first quarter of 2020, followed by a notable decline to approximately 0.48 by mid-2020. After this decrease, the ratio stabilized but remained lower than the initial levels, fluctuating between 0.42 and 0.53 through early 2023. This declining trend suggests that asset growth outpaced sales growth, implying reduced efficiency in asset utilization over time.
- Overall Insights
- The data indicate that while the company has successfully expanded both its asset base and revenue generation, its asset efficiency has diminished. The rapid accumulation of assets has not been matched proportionally by net sales growth, as evidenced by the declining asset turnover ratio. This pattern could raise considerations regarding capital allocation effectiveness and operational efficiency, warranting further investigation into asset management and sales strategies going forward.
Equity Turnover
Axon Enterprise Inc., equity turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net sales | 343,043) | 336,142) | 311,754) | 285,613) | 256,426) | 217,578) | 231,989) | 218,795) | 195,019) | 226,140) | 166,442) | 141,259) | 147,162) | 171,851) | 130,837) | 112,362) | 115,810) | ||||||
| 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) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Equity turnover1 | 0.91 | 0.94 | 0.87 | 0.83 | 0.82 | 0.82 | 0.78 | 0.73 | 0.72 | 0.70 | 0.70 | 0.68 | 1.00 | 0.98 | 0.93 | 0.92 | 0.90 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Caterpillar Inc. | 3.24 | 3.57 | 3.45 | 3.26 | 2.92 | 2.92 | 2.74 | 2.57 | 2.43 | — | — | — | — | — | — | — | — | ||||||
| Eaton Corp. plc | 1.23 | 1.22 | 1.26 | 1.21 | 1.19 | 1.20 | 1.22 | 1.24 | 1.18 | — | — | — | — | — | — | — | — | ||||||
| GE Aerospace | 2.24 | 2.02 | 2.29 | 2.06 | 1.82 | 1.76 | 1.92 | 2.15 | 2.10 | — | — | — | — | — | — | — | — | ||||||
| Honeywell International Inc. | 2.13 | 2.12 | 1.97 | 1.96 | 1.87 | 1.85 | 1.94 | 1.89 | 1.81 | — | — | — | — | — | — | — | — | ||||||
| Lockheed Martin Corp. | 6.86 | 7.12 | 5.41 | 5.61 | 6.57 | 6.12 | 6.89 | 10.24 | 10.46 | — | — | — | — | — | — | — | — | ||||||
| RTX Corp. | 0.94 | 0.92 | 0.94 | 0.93 | 0.89 | 0.88 | 0.89 | 0.88 | 0.84 | — | — | — | — | — | — | — | — | ||||||
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
Equity turnover
= (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
÷ Stockholders’ equity
= (343,043 + 336,142 + 311,754 + 285,613)
÷ 1,402,995 = 0.91
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in net sales, stockholders’ equity, and equity turnover over the observed periods.
- Net Sales
- Net sales experienced a general upward trajectory from March 2019 through March 2023. Beginning at approximately 115.8 million USD in the first quarter of 2019, sales showed moderate fluctuations during 2019 and the early part of 2020, with some declines notably in the second quarter of 2020 likely indicating external disruptions. From the end of 2020 onwards, net sales consistently increased, reaching a peak of over 343 million USD by the first quarter of 2023. This represents a near threefold increase over the four-year period, reflecting sustained growth momentum.
- Stockholders’ Equity
- Stockholders’ equity also exhibited strong growth over the period. Beginning just under 481 million USD in March 2019, equity rose steadily with a marked increase between the first and second quarter of 2020, where it jumped significantly from approximately 560 million to over 869 million USD. This sharp increase may suggest a capital injection or retained earnings accumulation. Subsequent quarters continued to show stable increases, culminating in equity reaching over 1.4 billion USD by March 2023, nearly tripling the starting value. The consistent rise indicates strengthening financial stability and increased resources available to the company.
- Equity Turnover
- Equity turnover ratios, which measure the efficiency of equity in generating sales, fluctuated throughout the timeline. Initially stable near 0.9 in 2019 and reaching a peak of 1.0 in the first quarter of 2020, the ratio then declined sharply to around 0.68-0.7 during the mid to late 2020 period. This decline reflects a slower rate of sales growth relative to equity expansion during this time. From late 2020 onwards, equity turnover gradually improved, recovering to levels around 0.9 by the first quarter of 2023. Despite this recovery, the turnover ratio remained slightly below the peak levels seen before 2020, indicating a moderate reduction in equity utilization efficiency in recent periods compared to the highest observed levels.
In summary, the data shows that while the company experienced robust growth in both net sales and stockholders’ equity, the efficiency of equity use (as indicated by equity turnover) varied, with a dip occurring during the 2020 period followed by gradual improvement. Overall, the financial position has strengthened markedly with expanded sales volume and increased equity base, supporting positive long-term prospects.