Axon Enterprise Inc. (AXON)

Days of inventory on hand (DOH)

		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
Inventory turnover		4.11	4.05	3.97	4.25	4.31	4.71	5.06	6.82	7.73	8.86	8.54	7.26	6.39	5.64	6.26	10.08	11.36	9.29	8.79	9.18
DOH	days	88.76	90.10	91.84	85.82	84.73	77.51	72.11	53.53	47.21	41.19	42.74	50.27	57.09	64.74	58.35	36.21	32.13	39.30	41.54	39.76

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.11
= 88.76

The Days of Inventory on Hand (DOH) for Axon Enterprise Inc has shown a general increasing trend over the past eight quarters, indicating a potential inefficiency in managing its inventory levels. In Q4 2023, the DOH was at 162.00 days, which was slightly lower compared to the previous quarter at 166.50 days. However, the DOH figures have been consistently high, with Q2 and Q3 of 2023 reaching 171.88 and 160.94 days, respectively. This suggests that Axon may be carrying excess inventory relative to its sales volume.

Comparing to the same quarter in the previous year, Axon's DOH has been trending upwards, with Q4 2023 at 162.00 days compared to 160.20 days in Q4 2022. This indicates a potential worsening efficiency in managing inventory levels.

The increasing trend in DOH could result in higher carrying costs, storage costs, and the risk of obsolescence. It may also signify lower inventory turnover and potential challenges in accurately forecasting demand.

In conclusion, Axon Enterprise Inc's Days of Inventory on Hand has been on the rise over the past eight quarters, which may require attention to optimize inventory management practices and improve operational efficiency.