Axon Enterprise Inc. (AXON)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 60.59% | 61.45% | 63.04% | 61.28% | 58.13% |
| Operating profit margin | 9.82% | 7.86% | -19.59% | -2.08% | -1.21% |
| Pretax margin | 9.83% | 16.57% | -16.48% | -0.93% | 0.39% |
| Net profit margin | 11.05% | 12.41% | -6.99% | -0.25% | 0.17% |
The gross profit margin for Axon Enterprise Inc has been relatively stable over the past five years, ranging from 57.88% in 2019 to 62.65% in 2021, indicating consistent profitability in generating revenue after accounting for the cost of goods sold.
The operating profit margin shows some fluctuation, with a significant improvement in 2023 to 9.90% compared to the negative margins in 2021 and 2020. This improvement suggests better control over operating expenses and higher efficiency in generating operating profits in the most recent year.
The pretax margin also exhibits variability, with a notable positive trend from -16.37% in 2021 to 9.91% in 2023. This indicates an enhancement in the company's ability to generate profits before considering taxes, demonstrating improved operational efficiency and cost management.
Similarly, the net profit margin reflects a positive trajectory, increasing from negative figures in 2021 and 2020 to 11.14% in 2023. This suggests a significant improvement in the company's ability to convert revenue into net income, indicating enhanced profitability and effective cost control measures.
Overall, the profitability ratios of Axon Enterprise Inc show positive trends in recent years, indicating improved operational efficiency, cost management, and profitability, which are favorable indicators for the company's financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.50% | 3.27% | -9.96% | -1.02% | -0.76% |
| Return on assets (ROA) | 5.07% | 5.16% | -3.56% | -0.12% | 0.10% |
| Return on total capital | 6.76% | 4.80% | -16.04% | -1.45% | -1.18% |
| Return on equity (ROE) | 10.81% | 11.60% | -5.73% | -0.18% | 0.16% |
Axon Enterprise Inc's profitability ratios have shown fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has improved steadily from -9.96% in 2021 to 4.50% in 2023, indicating the company's ability to generate operating profits relative to its total assets has strengthened.
2. Return on assets (ROA) has been generally positive except for a negative value in 2021. The ratio was highest in 2022 at 5.16% and slightly decreased to 5.07% in 2023, showing that the company is effectively utilizing its assets to generate profit.
3. Return on total capital has shown improvement, increasing from -16.04% in 2021 to 6.76% in 2023. This suggests that Axon Enterprise Inc is making better use of both its debt and equity capital to generate returns for its shareholders.
4. Return on equity (ROE) has also shown positive trends, with the ratio increasing from -5.73% in 2021 to 10.81% in 2023. This indicates that the company has been able to deliver better returns to its shareholders on their equity investments.
Overall, the profitability ratios of Axon Enterprise Inc have generally improved over the past few years, reflecting better operational efficiency and financial performance.