Axon Enterprise Inc. (AXON)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 841,146 | 608,009 | 461,297 | 322,471 | 264,672 |
| Inventory | US$ in thousands | 265,316 | 269,855 | 202,471 | 108,688 | 89,958 |
| Inventory turnover | 3.17 | 2.25 | 2.28 | 2.97 | 2.94 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $841,146K ÷ $265,316K
= 3.17
Based on the provided data, Axon Enterprise Inc.'s inventory turnover ratio has shown fluctuation over the past five years. The inventory turnover ratio measures the efficiency of a company in managing its inventory levels and generating sales from its inventory.
In 2020, the inventory turnover ratio was 2.94, indicating that Axon turned over its inventory approximately 2.94 times during that year. The ratio slightly increased to 2.97 in 2021, suggesting a marginal improvement in inventory management efficiency.
However, in the following years, the inventory turnover ratio declined, reaching 2.28 in 2022 and further dropping to 2.25 in 2023. These lower ratios may suggest potential issues with inventory management such as overstocking, slow-moving inventory, or inefficiencies in the supply chain.
On a positive note, the inventory turnover ratio rebounded significantly in 2024, reaching 3.17. This substantial increase indicates that Axon was more effective in selling and replacing its inventory during that year.
Overall, the fluctuation in Axon Enterprise Inc.'s inventory turnover ratio over the years highlights the importance of closely monitoring inventory management practices to ensure optimal efficiency in utilizing company resources and driving sales.
Peer comparison
Dec 31, 2024