Axon Enterprise Inc. (AXON)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 154,789 | 134,521 | 111,515 | 92,667 | 93,253 | 43,646 | 14,429 | -100,667 | -168,123 | -135,282 | -143,621 | -63,612 | -14,150 | -34,311 | -22,246 | -9,865 | -6,394 | 9,985 | 7,335 | 13,929 |
| Long-term debt | US$ in thousands | 677,113 | 676,315 | 675,518 | 674,724 | 673,967 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 543,495 | 507,647 | 488,927 | 480,539 |
| Return on total capital | 6.76% | 6.12% | 5.26% | 4.46% | 4.80% | 3.54% | 1.21% | -8.95% | -16.04% | -12.14% | -13.08% | -6.29% | -1.45% | -3.83% | -2.56% | -1.76% | -1.18% | 1.97% | 1.50% | 2.90% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $154,789K ÷ ($677,113K + $1,612,030K)
= 6.76%
The Return on Total Capital of Axon Enterprise Inc has shown an increasing trend in the past few quarters, indicating improved efficiency in generating returns from the total capital employed by the company. In the most recent quarter (Q4 2023), the Return on Total Capital stood at 6.76%, higher than the previous quarter's 6.12%.
Overall, the company has managed to maintain positive returns on its total capital throughout the periods analyzed. The return ranged from a low of -8.95% in Q1 2022 to a high of 6.76% in Q4 2023. It is worth noting that the return was negative in Q1 2022, but the company has since improved its performance significantly.
This progressive increase in Return on Total Capital indicates that Axon Enterprise Inc has been able to utilize its total capital more efficiently to generate profits for shareholders over time. However, it is important to continue monitoring this ratio to ensure sustained profitability and effective capital allocation in the future.
Peer comparison
Dec 31, 2023