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.