Axon Enterprise Inc. (AXON)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 843,877 | 782,836 | 727,638 | 669,758 | 608,009 | 570,217 | 530,385 | 499,551 | 461,297 | 413,351 | 382,276 | 351,492 | 322,471 | 324,788 | 305,568 | 277,784 | 264,672 | 259,049 | 241,515 | 235,235 |
| Inventory | US$ in thousands | 265,316 | 272,295 | 277,753 | 271,318 | 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 |
| Inventory turnover | 3.18 | 2.87 | 2.62 | 2.47 | 2.25 | 2.19 | 2.12 | 2.27 | 2.28 | 2.39 | 2.48 | 2.88 | 2.97 | 3.48 | 3.33 | 3.10 | 2.94 | 2.65 | 2.98 | 5.01 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $843,877K ÷ $265,316K
= 3.18
The inventory turnover ratio measures the efficiency with which a company manages its inventory by indicating how many times a company sells and replaces its inventory within a specific time period. For Axon Enterprise Inc., the inventory turnover has fluctuated over time, ranging from a high of 5.01 in March 2020 to a low of 2.12 in June 2023.
A higher inventory turnover ratio is generally preferred as it suggests that the company is selling goods quickly and efficiently. Conversely, a lower ratio may indicate overstocking or difficulties in selling inventory.
In the case of Axon Enterprise Inc., the inventory turnover ratio has shown a downward trend since March 2020, with some fluctuations along the way. Despite a slight increase in the most recent period (December 2024), the overall trend suggests that the company may be taking longer to sell and replace its inventory.
Analyzing the inventory turnover ratio in conjunction with other financial metrics and industry benchmarks can provide a more comprehensive understanding of how effectively Axon Enterprise Inc. is managing its inventory and operational efficiency.
Peer comparison
Dec 31, 2024
Dec 31, 2024