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AXON (Axon Enterprise) Degree of Operating Leverage : 0.51 (As of Mar. 2025)


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What is Axon Enterprise Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Axon Enterprise's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 0.51. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Axon Enterprise's Degree of Operating Leverage or its related term are showing as below:

AXON's Degree of Operating Leverage is ranked better than
59.42% of 308 companies
in the Aerospace & Defense industry
Industry Median: 1.05 vs AXON: 0.51

Axon Enterprise Degree of Operating Leverage Historical Data

The historical data trend for Axon Enterprise's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Axon Enterprise Degree of Operating Leverage Chart

Axon Enterprise Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.29 40.63 -4.14 2.43 4.07

Axon Enterprise Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.46 9.21 5.50 4.07 0.51

Competitive Comparison of Axon Enterprise's Degree of Operating Leverage

For the Aerospace & Defense subindustry, Axon Enterprise's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Axon Enterprise's Degree of Operating Leverage Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Axon Enterprise's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Axon Enterprise's Degree of Operating Leverage falls into.


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Axon Enterprise Degree of Operating Leverage Calculation

Axon Enterprise's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 336.278 (Mar. 2025) / 288.283 (Mar. 2024) - 1 )/( 2227.151 (Mar. 2025) / 1678.13 (Mar. 2024) - 1 )
=0.1665/0.3272
=0.51***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Axon Enterprise  (NAS:AXON) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Axon Enterprise Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Axon Enterprise's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Axon Enterprise Business Description

Address
17800 North 85th Street, Scottsdale, AZ, USA, 85255
Axon Enterprise Inc is building a public safety operating system by integrating a suite of hardware devices and cloud software solutions. The company's suite includes cloud-hosted digital evidence management solutions, productivity and real-time operations software, body cameras, in-car cameras, TASER energy devices, drones and robotic security, and training solutions. The company's operation comprises of two operating segments, Software and Sensors, and TASER. The company generates the majority of its revenue from the Software and Sensors segment, which is engaged in developing, manufacturing, and selling fully integrated hardware and cloud-based software solutions that enable law enforcement to capture, securely store, manage, share, and analyze video and other digital evidence.
Executives
Joshua Isner officer: EVP Global Sales 17800 N 85TH ST, SCOTTSDALE AZ 85255
Caitlin Elizabeth Kalinowski director 17800 NORTH 85TH STREET, SCOTTSDALE AZ 85255
Matthew R Mcbrady director
Brittany Bagley officer: CFO & CBO C/O SONOS, INC., 614 CHAPALA STREET, SANTA BARBARA CA 93101
Jeri Williams director 17800 N 85TH ST, SCOTTSDALE AZ 85255
Julie A Cullivan director 17800 N 85TH ST, SCOTTSDALE AZ 85255
Patrick W Smith director, officer: Chief Executive Officer 7860 EAST MCCLAIN DRIVE, SUITE 2, SCOTTSDALE AZ 85260-1627
Jeffrey C Kunins officer: Chief Product Officer 17800 NORTH 85TH STREET, SCOTTSDALE AZ 85255
Michael Garnreiter director 6735 E. GREENWAY PARKWAY, UNIT #2049, SCOTTSDALE AZ 85254
Hadi Partovi director 9655 LAKE WASHINGTON BLVD NE, BELLEVUE WA 98004
Erika Nardini director 1241 E MAIN ST, STAMFORD CT 06902-3520
Graham Smith director 301 BRANNMAN ST, SAN FRANCISCO CA 94107
Mark W Kroll director PO BOX 23, CRYSTAL BAY MN 55323
Luke Larson officer: Chief Marketing Officer 17800 N 85TH ST, SCOTTSDALE AZ 85255
James Zito officer: Chief Financial Officer 17800 N 85TH ST, SCOTTSDALE AZ 85255