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


See also:

Axon Enterprise Inc. Inventory Turnover