Axon Enterprise Inc. (AXON)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.11 | 4.31 | 7.73 | 6.39 | 11.33 | |
| DOH | days | 88.76 | 84.73 | 47.21 | 57.08 | 32.22 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.11
= 88.76
The days of inventory on hand (DOH) for Axon Enterprise Inc have shown a fluctuating trend over the past five years. In 2019, the company held inventory for an average of 63.42 days before selling it, which then increased to 124.06 days in 2020. Subsequently, DOH slightly decreased to 123.02 days in 2021 before rising to 160.20 days in 2022. However, there was a notable increase to 162.00 days in 2023.
The increasing trend in DOH from 2019 to 2023 may indicate potential inefficiencies in managing inventory levels or challenges in accurately forecasting demand. A high DOH value can suggest excess or obsolete inventory, leading to higher holding costs and potential liquidity issues. It is essential for the company to closely monitor and optimize its inventory management practices to improve operational efficiency and maintain healthy working capital levels.
Peer comparison
Dec 31, 2023