Axon Enterprise Inc. (AXON)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,109,680 | 872,172 | 840,378 | 575,258 | 440,033 |
| Inventory | US$ in thousands | 269,855 | 202,471 | 108,688 | 89,958 | 38,845 |
| Inventory turnover | 4.11 | 4.31 | 7.73 | 6.39 | 11.33 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,109,680K ÷ $269,855K
= 4.11
Inventory turnover is a key financial ratio used to assess how efficiently a company manages its inventory. It is calculated by dividing the cost of goods sold by the average inventory level. In the case of Axon Enterprise Inc, the inventory turnover ratio has shown fluctuation over the past five years.
In 2023, the inventory turnover ratio was 2.25, indicating that Axon was able to sell and replace its inventory 2.25 times during the year. This was a slight decrease from the previous year's ratio of 2.28.
Comparing further back, in 2021, the inventory turnover ratio was 2.97, showing an improvement in inventory management efficiency compared to 2023. However, in 2019, the ratio was significantly higher at 5.76, suggesting that Axon was turning over its inventory more than twice as fast than it did in 2023.
Overall, the fluctuation in Axon's inventory turnover ratio indicates varying levels of inventory management efficiency over the past five years. It is essential for the company to closely monitor this ratio to ensure optimal inventory turnover and avoid potential issues such as overstocking or stockouts.
Peer comparison
Dec 31, 2023