Axon Enterprise Inc. (AXON)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.73 | 3.23 | 2.56 | 2.74 | 3.17 | |
| DSO | days | 97.80 | 113.00 | 142.38 | 133.14 | 115.02 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.73
= 97.80
The Days Sales Outstanding (DSO) for Axon Enterprise Inc has shown fluctuating trends over the past five years. In 2023, the DSO decreased to 97.52 days from 109.87 days in 2022, indicating an improvement in the company's ability to collect its accounts receivable. This implies that the company is more efficient in converting its sales into cash in the most recent year.
Comparing the DSO to previous years, Axon had a higher DSO in 2021 at 135.63 days, followed by 2020 with 122.85 days and 2019 with 100.99 days. The lower DSO in 2023 suggests that Axon has been more effective in managing its accounts receivable and collecting outstanding payments from customers in a timelier manner.
Overall, the decreasing trend in DSO over the years indicates that Axon has been enhancing its credit and collection policies, leading to improved cash flow and liquidity. However, it is essential for the company to continue monitoring and managing its DSO to ensure efficient working capital management and sustainable financial performance.
Peer comparison
Dec 31, 2023