Axon Enterprise Inc. (AXON)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 59.61% | 61.11% | 61.23% | 62.65% | 61.13% |
| Operating profit margin | 2.81% | 9.90% | 7.84% | -19.47% | -2.08% |
| Pretax margin | 18.32% | 9.91% | 16.51% | -16.37% | -0.92% |
| Net profit margin | 18.10% | 11.14% | 12.37% | -6.95% | -0.25% |
Based on the provided data, the gross profit margin of Axon Enterprise Inc. has shown a slight fluctuation over the past five years, ranging from 59.61% in December 31, 2024 to 62.65% in December 31, 2021. This indicates that the company has been able to effectively manage its production costs and maintain a relatively stable level of profitability from its core operations.
In terms of operating profit margin, Axon Enterprise Inc. experienced significant volatility, with a low of -19.47% in December 31, 2021, and a high of 9.90% in December 31, 2023. This suggests that the company faced challenges in controlling its operating expenses in some periods but managed to improve its operational efficiency over time.
The pretax margin of Axon Enterprise Inc. also showed variability, reaching a low of -16.37% in December 31, 2021, and a high of 18.32% in December 31, 2024. This indicates fluctuations in the company's ability to generate earnings before taxes relative to its total revenue, possibly due to changes in tax regulations or one-time events impacting profitability.
Lastly, the net profit margin of Axon Enterprise Inc. saw improvements over the years, with a negative net profit margin of -6.95% in December 31, 2021, turning positive to 18.10% in December 31, 2024. This trend suggests that the company was able to enhance its bottom-line profitability by effectively managing its costs and driving revenue growth.
Overall, the performance of Axon Enterprise Inc. in terms of profitability ratios reflects a mix of challenges and strengths in managing costs, operating efficiency, and generating sustainable profits over the past five years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.31% | 4.50% | 3.27% | -9.96% | -1.02% |
| Return on assets (ROA) | 8.43% | 5.07% | 5.16% | -3.56% | -0.12% |
| Return on total capital | 16.69% | 10.05% | 15.49% | -16.58% | -1.33% |
| Return on equity (ROE) | 16.20% | 10.81% | 11.60% | -5.73% | -0.18% |
Based on the provided data, Axon Enterprise Inc.'s profitability ratios have shown varying trends over the years:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA was -1.02% in 2020, decreased significantly to -9.96% in 2021, but improved to reach 3.27% in 2022, further increasing to 4.50% in 2023, and slightly dropping to 1.31% in 2024. This indicates that the company's operational efficiency in generating profits from its assets has shown improvement in recent years.
2. Return on Assets (ROA):
- The ROA stood at -0.12% in 2020, declined to -3.56% in 2021, and then notably improved to 5.16% in 2022. It slightly decreased to 5.07% in 2023 and further rose to 8.43% in 2024. This portrays an improving trend in the company's overall profitability in generating earnings from its total assets.
3. Return on Total Capital:
- The Return on Total Capital was -1.33% in 2020, significantly dropped to -16.58% in 2021, but then exhibited a substantial recovery to 15.49% in 2022. It slightly decreased to 10.05% in 2023 and further increased to 16.69% in 2024. This indicates the company's effective utilization of both debt and equity capital to generate returns for its stakeholders.
4. Return on Equity (ROE):
- The ROE was -0.18% in 2020, decreased to -5.73% in 2021 but improved significantly to 11.60% in 2022. It slightly dropped to 10.81% in 2023 and increased to 16.20% in 2024. This shows an upward trend in the company's ability to generate profits for its shareholders from the equity invested in the business.
Overall, Axon Enterprise Inc. has shown improvements in its profitability ratios, indicating better operational efficiency and effectiveness in utilizing assets and capital to generate returns for both the company and its shareholders over the years.