Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Dividend Discount Model (DDM)
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
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Profitability Ratios (Summary)
Axon Enterprise Inc., profitability 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).
- Gross profit margin
- The gross profit margin showed relative stability over the observed periods, fluctuating moderately between approximately 57.9% and 62.8%. An initial slight decline occurred in 2019, reaching its lowest point near the end of that year, followed by a general upward trend through 2020 and 2021. Subsequently, the margin slightly decreased throughout 2022 and early 2023 but remained above 60%, indicating consistent gross profitability despite some variability.
- Operating profit margin
- The operating profit margin experienced significant volatility. Beginning modestly positive in early 2019, it sharply declined into negative territory starting in late 2019, reaching a low near -19.5% by the end of 2021. This suggests increased operational challenges or cost pressures during this interval. However, from mid-2022 onwards, the margin recovered substantially, returning to positive figures above 7% by late 2022 and early 2023, indicating improved operating efficiency or cost management.
- Net profit margin
- The net profit margin mirrored the operating margin trend but with less severe negative dips. It started at approximately 5.2% in early 2019 and fell into negative territory during 2020 and 2021, with a low near -8.7%. A notable recovery began in early 2022, with margins surpassing 10% multiple times through 2023. This pattern reflects the company's ability to restore overall profitability after a challenging period.
- Return on equity (ROE)
- ROE tracked closely with the net profit margin, starting with modest positive returns around 4.7% in early 2019. It declined significantly into negative or near-zero territory through 2020 and 2021, hitting lows around -6.4%. From 2022 forward, ROE improved sharply, reaching double-digit positive returns by year-end 2022 and maintaining strong performance into 2023, suggesting enhanced shareholder value generation during this recent period.
- Return on assets (ROA)
- The ROA followed a similar pattern, with positive values near 3.1% in early 2019 that dropped to slightly negative or near-zero figures between 2020 and 2021. Beginning in 2022, ROA showed recovery, peaking around 7.3%, then stabilizing slightly above 4.5% in early 2023. This indicates better utilization of assets generating returns after a phase of subdued performance.
Return on Sales
Return on Investment
Gross Profit Margin
Axon Enterprise Inc., gross profit margin 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) | |||||||||||||||||||||||
| Gross margin | |||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
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
Gross profit margin = 100
× (Gross marginQ1 2023
+ Gross marginQ4 2022
+ Gross marginQ3 2022
+ Gross marginQ2 2022)
÷ (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the quarterly performance over the examined period. Net sales display a general upward trajectory, increasing from approximately 116 million USD in the first quarter of 2019 to over 343 million USD by the first quarter of 2023. This steady growth highlights an expanding revenue base for the company over the four-year span.
Gross margin figures likewise show a rising pattern, starting near 68.9 million USD in early 2019 and peaking above 205 million USD in the first quarter of 2023. The growth in gross margin aligns well with the increase in net sales, indicating that the company managed to scale its core earnings proportionally with revenues.
The gross profit margin percentage, which reflects the ratio of gross margin to net sales, maintains relative stability throughout the timeline. It fluctuates modestly, generally ranging between 57.88% and 62.75%. The data suggests a slight improvement in profitability margins from the mid-2019 period onward, particularly evident in the increase above 61% starting in early 2020 and sustaining into 2023. Despite some quarter-to-quarter variation, the gross profit margin does not exhibit a clear declining or rapidly increasing trend, suggesting consistent cost management relative to sales.
- Net Sales
- Exhibits a consistent upward trend with significant growth over the four-year period, indicating robust revenue expansion.
- Gross Margin
- Increases steadily in absolute terms, mirroring the upward sales trend, and reinforcing improved scale of core profitability.
- Gross Profit Margin
- Maintains a stable range around 60%, with slight improvement over time, reflecting effective cost control relative to revenue.
Overall, the financial data portrays a company with growing sales and proportional increases in gross profit, accompanied by a steady and slightly improving gross profit margin. This pattern suggests effective operational scaling and stable profitability on the gross margin level through the quarters analyzed.
Operating Profit Margin
Axon Enterprise Inc., operating profit margin 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) | |||||||||||||||||||||||
| Income (loss) from operations | |||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
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
Operating profit margin = 100
× (Income (loss) from operationsQ1 2023
+ Income (loss) from operationsQ4 2022
+ Income (loss) from operationsQ3 2022
+ Income (loss) from operationsQ2 2022)
÷ (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reflects notable fluctuations in the company's operating income, net sales, and operating profit margin over the examined period. Several trends can be observed in the quarterly results.
- Income (loss) from operations
- Operating income experienced considerable volatility throughout the period. Initial quarters show marginal positive or negative amounts with occasional spikes, such as in September 2019 (6,616 thousand USD). However, negative results dominate the latter part of 2019 and 2020, with significant losses especially in the first half of 2021, peaking at approximately -93,685 thousand USD in June 2021. A recovery trend is visible from late 2021 through early 2023, where operating income turns positive again, reaching as high as 32,107 thousand USD in September 2022 before moderating somewhat.
- Net sales
- Net sales display a clear upward trajectory overall. Starting around 115 million USD in early 2019, there is consistent growth each quarter, culminating in over 343 million USD by the first quarter of 2023. This steady increase indicates expanding revenue streams despite variations in operating income.
- Operating profit margin
- The operating profit margin mirrors the instability in operating income but within the context of growing sales. Margins fluctuate between positive and negative values during 2019 and 2020, with a sharp decline into negative territory at the end of 2020 and throughout most of 2021, reaching a low of approximately -19.47%. However, margins improve significantly in 2022, turning positive from the second quarter onward and reaching a peak of nearly 7.84% in the fourth quarter of 2022 and sustaining above 7% in early 2023. This suggests improved cost control or operational efficiency relative to revenues in the latter period.
In summary, the data shows a company experiencing initial operational challenges leading to substantial losses in 2020 and 2021 despite rising sales. The recovery in operating income and margin from 2022 onward indicates a positive turnaround potentially driven by enhanced profitability and operational improvements supporting sustained revenue growth.
Net Profit Margin
Axon Enterprise Inc., net profit margin 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 income (loss) | |||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
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 profit margin = 100
× (Net income (loss)Q1 2023
+ Net income (loss)Q4 2022
+ Net income (loss)Q3 2022
+ Net income (loss)Q2 2022)
÷ (Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022
+ Net salesQ2 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends and fluctuations in the company's profitability and sales performance over the observed periods.
- Net Income (Loss)
- The net income figures exhibit significant volatility throughout the quarters. Early periods show positive net income values with occasional sharp declines such as in December 2019 and June 2020, where net losses were substantial. A recovery trend appears in late 2020 and continues into 2021 with positive net income returning, peaking notably in the third quarter of 2021. However, fluctuations persist with losses in December 2021 and varying positive results afterward. The most recent quarters in 2023 demonstrate a consistent positive net income level, indicating an improved profitability position compared to the volatile prior periods.
- Net Sales
- Net sales display a generally increasing trend over the observed periods. Starting from approximately 115.8 million USD in early 2019, sales show steady growth with a brief acceleration in late 2019 and into 2020. From 2021 onward, the trend is clearly upward, reaching over 343 million USD by the first quarter of 2023. This steady rise in sales reflects expanding business volume or improved market demand, contributing positively to the company's revenue base.
- Net Profit Margin
- The net profit margin fluctuates considerably, mirroring the volatility in net income relative to sales. Margins were modestly positive in early 2019, dipping slightly towards the end of that year before turning negative in 2020. The lowest margins are observed mid-2020 through early 2021, reaching a negative peak at -8.69%. A significant turnaround occurs in 2022, where profit margins become strongly positive, peaking above 14% in mid-2022. The margin stabilizes at a healthy 10.76% by the first quarter of 2023, suggesting improved operational efficiency or cost control aligned with rising sales.
In summary, the financial data indicates the company experienced a turbulent period in profitability around 2019 and 2020. Despite these challenges, sales grew steadily throughout, and profitability indicators improved markedly from 2021 into 2023. The recovery in net income and net profit margin alongside rising sales suggests enhanced operational performance and profitability stabilization in the most recent periods.
Return on Equity (ROE)
Axon Enterprise Inc., ROE 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 income (loss) | |||||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
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
ROE = 100
× (Net income (loss)Q1 2023
+ Net income (loss)Q4 2022
+ Net income (loss)Q3 2022
+ Net income (loss)Q2 2022)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The quarterly financial performance demonstrates notable volatility in net income, with swings from positive to negative values across the observed periods. Initially, net income showed moderate positive figures in early 2019, but a significant loss occurred in the final quarter of that year. The year 2020 experienced pronounced fluctuations, including sharp negative spikes mid-year and a recovery towards the end, culminating in strong positive net income at year-end.
The beginning of 2021 was marked by considerable losses, particularly in the first half of the year, before a substantial recovery in the third quarter. However, the year closed with another quarterly decline. From early 2022 onwards, net income generally remained positive, showing a trend of recovery and improved profitability, with the exception of some fluctuations in absolute levels. The latest quarter in the dataset reflects a continuation of profitable performance.
Stockholders’ equity exhibited a steady upward trajectory throughout the period. Starting from approximately 480 million US dollars, equity consistently increased each quarter, with especially rapid growth in 2020, likely indicative of capital injections or retained earnings accumulation despite the net losses experienced during that period. The equity base nearly tripled from the start to the end of the analysis, passing 1.4 billion US dollars by the last reporting quarter, indicating strengthening financial position over time.
The Return on Equity (ROE) ratio highlights the impact of income volatility on shareholder returns. ROE was positive but modest in the early periods, with values mostly between 3% and 5%. It sharply declined toward zero and negative territory during the years 2020 and 2021, reflecting the net losses recorded in those years. Notably, ROE reached its lowest points in mid-2020 and mid-2021, consistent with heavy net income losses. From early 2022 onwards, ROE rebounded strongly, achieving two-digit positive returns in several quarters, suggesting improved operational efficiency and profitability relative to shareholders' equity.
- Net Income (US$ thousands)
- Shows high volatility with multiple quarters of large losses followed by strong recoveries, particularly recovering from losses in 2020 and early 2021 to sustained profitability in 2022 and 2023.
- Stockholders’ Equity (US$ thousands)
- Displays a consistent and significant increase over the period, indicating a strengthening equity base and possibly reflecting retained earnings or capital raises despite income fluctuations.
- Return on Equity (%)
- ROE correlates closely with net income trends, transitioning from moderate positive returns through deep negative levels during loss periods, then recovering to robust positive levels in the most recent periods, signaling restored profitability and improved return generation on equity.
Return on Assets (ROA)
Axon Enterprise Inc., ROA 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 income (loss) | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||
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
ROA = 100
× (Net income (loss)Q1 2023
+ Net income (loss)Q4 2022
+ Net income (loss)Q3 2022
+ Net income (loss)Q2 2022)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Trends
- Net income exhibits significant volatility across the periods analyzed. Initially, net income showed positive values, then experienced notable fluctuations including significant losses in mid-2020 and 2021. Specifically, a large loss was recorded in June 2020 (-$30,759 thousand), followed by another loss in March 2021 (-$47,917 thousand). Subsequently, there is evidence of recovery with net income returning to positive territory in the latter quarters of 2021 and into 2022 and 2023, reaching $45,139 thousand as of March 31, 2023. This pattern indicates periods of financial challenges interspersed with recovery phases.
- Total Assets
- Total assets have demonstrated a consistent upward trend over the entire period. Starting at approximately $739 million in March 2019, assets increased steadily each quarter, reaching about $3 billion by March 31, 2023. This growth trajectory suggests ongoing expansion and investment in assets, approximately quadrupling over the reporting timeframe.
- Return on Assets (ROA)
- The return on assets has reflected the profitability challenges indicated by net income performance. Initially positive in early 2019, ROA declined sharply in 2020, entering negative territory and reaching lows below -4% during 2021. However, a marked recovery occurred from early 2022 onwards, with ROA improving to over 7% mid-2022 and stabilizing around 4.5% by March 2023. This recovery aligns with the resurgent net income figures and indicates improved efficiency in generating profits from the asset base.
- Overall Analysis
- The company experienced considerable financial instability during 2020 and 2021, illustrated by fluctuating net income and negative returns on assets. Despite these challenges, the firm has managed to maintain asset growth, suggesting continued investment or acquisitions. The recovery in profitability from 2022 into early 2023, both in net income and ROA, points to effective measures taken to enhance operational performance and asset utilization, resulting in improved financial health.