Axon Enterprise Inc. (AXON)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 217,659 | 178,082 | 151,980 | 106,251 | 131,855 | 105,855 | 74,925 | 106,568 | 80,322 | 30,957 | 9,664 | -103,709 | -169,609 | -135,282 | -143,621 | -63,612 | -14,150 | -34,611 | -22,546 | -10,165 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,327,660 | 2,099,840 | 1,928,840 | 1,818,020 | 1,612,030 | 1,521,120 | 1,445,000 | 1,403,000 | 1,268,490 | 1,231,310 | 1,193,650 | 1,124,790 | 1,047,850 | 1,113,900 | 1,097,700 | 1,010,900 | 976,255 | 895,153 | 869,813 | 559,590 |
| Return on total capital | 9.35% | 8.48% | 7.88% | 5.84% | 8.18% | 6.96% | 5.19% | 7.60% | 6.33% | 2.51% | 0.81% | -9.22% | -16.19% | -12.14% | -13.08% | -6.29% | -1.45% | -3.87% | -2.59% | -1.82% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $217,659K ÷ ($—K + $2,327,660K)
= 9.35%
Axon Enterprise Inc.'s return on total capital has shown a fluctuating trend over the observation period. The ratio was negative in the initial periods, indicating that the company was not generating sufficient returns to cover its total capital costs. However, starting from the second half of 2022, the return on total capital turned positive and began to rise steadily.
From March 31, 2023, onwards, the return on total capital consistently improved, reaching levels above 5%. This positive trend demonstrates that Axon Enterprise Inc. has been more effectively utilizing its total capital to generate returns for its shareholders and creditors.
The most recent available data as of December 31, 2024, shows that the return on total capital for Axon Enterprise Inc. has reached 9.35%, reflecting a significant improvement compared to the negative figures seen in the past. This suggests that the company has enhanced its operational efficiency and profitability, which could be a positive signal for investors and stakeholders.
Peer comparison
Dec 31, 2024