Axon Enterprise Inc. (AXON)
Inventory turnover
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cost of revenue (ttm) | US$ in thousands | 1,109,683 | 1,053,703 | 992,615 | 936,864 | 872,172 | 814,861 | 781,058 | 832,931 | 840,378 | 826,665 | 783,393 | 651,040 | 575,158 | 550,293 | 506,740 | 472,929 | 441,333 | 377,685 | 360,281 | 345,043 |
Inventory | US$ in thousands | 269,855 | 260,119 | 249,767 | 220,268 | 202,471 | 173,046 | 154,297 | 122,150 | 108,688 | 93,279 | 91,739 | 89,657 | 89,958 | 97,610 | 81,010 | 46,922 | 38,845 | 40,666 | 40,999 | 37,587 |
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 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,109,683K ÷ $269,855K
= 4.11
Axon Enterprise Inc's inventory turnover has been relatively stable over the past eight quarters, ranging from 2.12 to 2.48. The highest inventory turnover was observed in Q2 2022 at 2.88, indicating that the company efficiently converted its inventory into sales during that period. However, there was a slight decline in inventory turnover in subsequent quarters.
Overall, the average inventory turnover for the given period is approximately 2.35, which suggests that, on average, Axon Enterprise Inc sells its entire inventory 2.35 times per year. A lower inventory turnover may indicate either excessive inventory levels or potential inefficiencies in managing and selling inventory. Conversely, a higher inventory turnover typically reflects effective inventory management and strong sales performance.
It is essential for Axon Enterprise Inc to monitor its inventory turnover closely to ensure that the company maintains optimal inventory levels to meet customer demand while avoiding excess holding costs. Analyzing inventory turnover trends can provide valuable insights into the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023
Dec 31, 2023