Axon Enterprise Inc. (AXON)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 154,789 | 93,253 | -168,123 | -14,150 | -6,394 |
| Long-term debt | US$ in thousands | 677,113 | 673,967 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,612,030 | 1,268,490 | 1,047,850 | 976,255 | 543,495 |
| Return on total capital | 6.76% | 4.80% | -16.04% | -1.45% | -1.18% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $154,789K ÷ ($677,113K + $1,612,030K)
= 6.76%
Axon Enterprise Inc's return on total capital has shown improvement over the years, with a significant increase from -16.04% in 2021 to 6.76% in 2023. This indicates that the company has become more efficient in generating profits from its total capital employed. The positive trend in return on total capital suggests that Axon Enterprise Inc is utilizing its capital more effectively to generate returns for its stakeholders. It is important for the company to continue monitoring and improving this ratio to sustain its financial performance and shareholder value.
Peer comparison
Dec 31, 2023