Axon Enterprise Inc. (AXON)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.17 | 2.25 | 2.28 | 2.97 | 2.94 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 1.60 | 0.98 | 0.99 | 1.25 | 0.94 |
The inventory turnover ratio for Axon Enterprise Inc. has shown a slight fluctuation over the years, indicating the company's efficiency in managing its inventory. It was 2.94 in 2020, increased to 2.97 in 2021, dropped to 2.28 in 2022, and further decreased to 2.25 in 2023, followed by a notable increase to 3.17 in 2024. A higher inventory turnover ratio suggests that the company is selling its products more frequently within a specific period.
The receivables turnover ratio is not provided for the years under consideration. This could indicate that there is either no accounts receivable or the data is not available. A higher receivables turnover ratio would indicate that the company is collecting its receivables more quickly, which is generally a positive sign.
Similarly, the payables turnover ratio is not available in the data provided. This ratio could provide insight into how quickly the company pays its creditors, although the absence of data in this case hinders a detailed analysis.
The working capital turnover ratio for Axon Enterprise shows variability from year to year. It was 0.94 in 2020, increased to 1.25 in 2021, decreased to 0.99 in 2022, was relatively stable at 0.98 in 2023, and significantly rose to 1.60 in 2024. A higher working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales.
In summary, based on the information provided, Axon Enterprise Inc. has seen fluctuations in its inventory turnover and working capital turnover ratios, which reflect changes in its operational efficiency and utilization of resources over the years. The absence of data for receivables and payables turnovers limits a more comprehensive assessment of the company's activity ratios.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 115.13 | 162.00 | 160.20 | 123.02 | 124.06 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Axon Enterprise Inc.'s activity ratios indicate the efficiency of its operations in managing inventory, sales, and payables.
1. Days of Inventory on Hand (DOH):
- The company's DOH decreased from 124.06 days in 2020 to 123.02 days in 2021, suggesting a slight improvement in managing inventory levels.
- However, DOH saw a significant increase to 160.20 days in 2022 and further to 162.00 days in 2023, indicating a potential issue with inventory management or slower inventory turnover.
- In 2024, there was a decrease in DOH to 115.13 days, which may indicate a more efficient management of inventory levels compared to the previous two years.
2. Days of Sales Outstanding (DSO):
- Data for DSO is not provided for any of the years, which limits the analysis of the company's efficiency in collecting payments from customers.
3. Number of Days of Payables:
- Similar to DSO, information on the number of days of payables is not available for any of the years, making it difficult to assess the company's ability to manage its payables effectively.
In conclusion, while Axon Enterprise Inc. showed some improvement in managing inventory levels in 2021 and 2024, the lack of data on DSO and payables prevents a comprehensive analysis of the company's overall operational efficiency.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 5.72 | 6.24 | 6.46 |
| Total asset turnover | 0.47 | 0.45 | 0.42 | 0.51 | 0.49 |
Based on the provided data for Axon Enterprise Inc., we can analyze the long-term activity ratios, namely the Fixed Asset Turnover and Total Asset Turnover.
1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio indicates how efficiently the company is utilizing its fixed assets to generate sales. A higher ratio suggests better asset utilization.
- In 2020, the Fixed Asset Turnover was 6.46, showing that Axon generated $6.46 in sales for every dollar invested in fixed assets.
- The ratio decreased slightly to 6.24 in 2021 and then further to 5.72 in 2022. This decline may indicate potential inefficiencies in asset utilization or changes in the business operations.
- However, data for 2023 and 2024 is missing, making it difficult to assess the trend beyond 2022. It would be important to monitor future data to understand the direction of this ratio.
2. Total Asset Turnover:
- The Total Asset Turnover ratio reflects how efficiently the company is generating sales from all its assets, including both fixed and current assets.
- Axon had a Total Asset Turnover of 0.49 in 2020, indicating that it generated $0.49 in sales for every dollar of total assets.
- The ratio improved in 2021 to 0.51, suggesting enhanced efficiency in asset utilization.
- However, in 2022, the ratio decreased to 0.42, which could be due to changes in the business environment or operational factors.
- The ratio then increased slightly to 0.45 in 2023 and further to 0.47 in 2024. This improvement may indicate better sales generation relative to total assets.
In summary, the trends observed in the Fixed Asset Turnover and Total Asset Turnover ratios suggest fluctuations in asset efficiency and utilization over the years. Monitoring these ratios over time can provide insights into Axon Enterprise Inc.'s operational performance and efficiency in utilizing its assets to drive sales.