Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Axon Enterprise Inc., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Axon Enterprise Inc. gross profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Axon Enterprise Inc. operating profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Axon Enterprise Inc. net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Axon Enterprise Inc. ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Axon Enterprise Inc. ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Gross Profit Margin
Axon Enterprise Inc., gross profit margin 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) | ||||||
| Gross margin | 728,638) | 540,910) | 416,331) | 307,286) | 258,583) | |
| Net sales | 1,189,935) | 863,381) | 681,003) | 530,860) | 420,068) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 61.23% | 62.65% | 61.13% | 57.88% | 61.56% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Boeing Co. | 5.26% | 4.84% | -9.78% | 5.83% | — | |
| Caterpillar Inc. | 26.91% | 26.30% | 25.47% | 27.83% | — | |
| Cummins Inc. | 23.93% | 23.71% | 24.70% | 25.37% | — | |
| Eaton Corp. plc | 33.19% | 32.28% | 30.52% | 32.97% | — | |
| General Electric Co. | 24.55% | 24.19% | 17.26% | 23.52% | — | |
| Honeywell International Inc. | 36.99% | 35.85% | 32.07% | 33.70% | — | |
| Lockheed Martin Corp. | 12.56% | 13.52% | 13.23% | 13.99% | — | |
| RTX Corp. | 20.38% | 19.40% | 15.08% | 25.93% | — | |
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
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × 728,638 ÷ 1,189,935 = 61.23%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Axon Enterprise Inc. gross profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Operating Profit Margin
Axon Enterprise Inc., operating profit margin 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) | ||||||
| Income (loss) from operations | 93,253) | (168,123) | (14,150) | (6,394) | 24,841) | |
| Net sales | 1,189,935) | 863,381) | 681,003) | 530,860) | 420,068) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 7.84% | -19.47% | -2.08% | -1.20% | 5.91% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Boeing Co. | -5.33% | -4.66% | -21.95% | -2.58% | — | |
| Caterpillar Inc. | 13.97% | 14.27% | 11.67% | 16.33% | — | |
| Cummins Inc. | 10.43% | 11.27% | 11.45% | 11.45% | — | |
| Eaton Corp. plc | 14.55% | 15.69% | 11.45% | 13.38% | — | |
| General Electric Co. | 6.05% | 8.58% | 5.49% | 12.84% | — | |
| Honeywell International Inc. | 18.12% | 18.03% | 17.45% | 18.66% | — | |
| Lockheed Martin Corp. | 12.65% | 13.61% | 13.22% | 14.29% | — | |
| RTX Corp. | 8.07% | 7.70% | -3.34% | 11.64% | — | |
| Operating Profit Margin, Sector | ||||||
| Capital Goods | 8.44% | 9.24% | 3.47% | 10.96% | — | |
| Operating Profit Margin, Industry | ||||||
| Industrials | 9.38% | 9.86% | 4.69% | 9.74% | — | |
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
Operating profit margin = 100 × Income (loss) from operations ÷ Net sales
= 100 × 93,253 ÷ 1,189,935 = 7.84%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Axon Enterprise Inc. operating profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Net Profit Margin
Axon Enterprise Inc., net profit margin 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) | |
| Net sales | 1,189,935) | 863,381) | 681,003) | 530,860) | 420,068) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 12.37% | -6.95% | -0.25% | 0.17% | 6.95% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Boeing Co. | -7.41% | -6.75% | -20.42% | -0.83% | — | |
| Caterpillar Inc. | 11.85% | 13.47% | 7.68% | 12.00% | — | |
| Cummins Inc. | 7.66% | 8.87% | 9.03% | 9.59% | — | |
| Eaton Corp. plc | 11.86% | 10.92% | 7.90% | 10.34% | — | |
| General Electric Co. | 0.31% | -9.17% | 7.81% | -5.69% | — | |
| Honeywell International Inc. | 14.00% | 16.11% | 14.64% | 16.73% | — | |
| Lockheed Martin Corp. | 8.69% | 9.42% | 10.45% | 10.42% | — | |
| RTX Corp. | 7.75% | 6.00% | -6.22% | 7.19% | — | |
| Net Profit Margin, Sector | ||||||
| Capital Goods | 5.43% | 4.03% | 2.24% | 5.28% | — | |
| Net Profit Margin, Industry | ||||||
| Industrials | 5.38% | 6.53% | 1.71% | 4.12% | — | |
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 profit margin = 100 × Net income (loss) ÷ Net sales
= 100 × 147,139 ÷ 1,189,935 = 12.37%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Axon Enterprise Inc. net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Return on Equity (ROE)
Axon Enterprise Inc., ROE 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) | |
| Stockholders’ equity | 1,268,491) | 1,047,849) | 976,255) | 543,495) | 467,324) | |
| Profitability Ratio | ||||||
| ROE1 | 11.60% | -5.73% | -0.18% | 0.16% | 6.25% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 42.25% | 39.37% | 19.56% | 41.77% | — | |
| Cummins Inc. | 23.97% | 25.15% | 22.19% | 30.11% | — | |
| Eaton Corp. plc | 14.45% | 13.06% | 9.44% | 13.75% | — | |
| General Electric Co. | 0.62% | -16.17% | 16.04% | -17.58% | — | |
| Honeywell International Inc. | 29.74% | 29.85% | 27.23% | 33.22% | — | |
| Lockheed Martin Corp. | 61.86% | 57.62% | 113.60% | 199.23% | — | |
| RTX Corp. | 7.16% | 5.29% | -4.88% | 13.25% | — | |
| ROE, Sector | ||||||
| Capital Goods | 13.98% | 9.31% | 5.37% | 18.85% | — | |
| ROE, Industry | ||||||
| Industrials | 15.87% | 16.89% | 4.68% | 14.46% | — | |
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
ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 147,139 ÷ 1,268,491 = 11.60%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Axon Enterprise Inc. ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Return on Assets (ROA)
Axon Enterprise Inc., ROA 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) | |
| Total assets | 2,851,894) | 1,688,210) | 1,381,023) | 845,639) | 719,540) | |
| Profitability Ratio | ||||||
| ROA1 | 5.16% | -3.56% | -0.12% | 0.10% | 4.06% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Boeing Co. | -3.60% | -3.03% | -7.80% | -0.48% | — | |
| Caterpillar Inc. | 8.18% | 7.84% | 3.83% | 7.77% | — | |
| Cummins Inc. | 7.10% | 8.99% | 7.91% | 11.45% | — | |
| Eaton Corp. plc | 7.03% | 6.30% | 4.43% | 6.74% | — | |
| General Electric Co. | 0.12% | -3.28% | 2.25% | -1.87% | — | |
| Honeywell International Inc. | 7.97% | 8.60% | 7.40% | 10.47% | — | |
| Lockheed Martin Corp. | 10.84% | 12.41% | 13.47% | 13.11% | — | |
| RTX Corp. | 3.27% | 2.39% | -2.17% | 3.96% | — | |
| ROA, Sector | ||||||
| Capital Goods | 3.02% | 2.09% | 1.00% | 2.94% | — | |
| ROA, Industry | ||||||
| Industrials | 3.57% | 3.95% | 0.89% | 2.57% | — | |
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
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 147,139 ÷ 2,851,894 = 5.16%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Axon Enterprise Inc. ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |