Axon Enterprise Inc. (AXON)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	3.72	3.32	3.67	3.36	3.23	2.56	2.61	2.68	2.58	3.29	3.99	3.93	2.75	3.62	3.83	3.80	3.19	3.18	3.33	2.91
Payables turnover	12.56	11.70	13.60	14.20	14.56	16.23	12.87	16.88	26.08	30.15	100.72	32.90	23.82	24.52	12.64	14.98	17.06	25.80	39.75	34.98
Working capital turnover	0.98	0.95	0.92	0.89	0.99	1.38	1.34	1.37	1.25	1.17	1.00	0.98	0.94	1.01	0.92	1.33	1.28	1.21	1.09	1.08

The activity ratios of Axon Enterprise Inc indicate the efficiency of the company in managing its assets and liabilities during the specified periods.

- Inventory turnover has been relatively stable around 2.2 in recent quarters, indicating that the company is able to sell and replace its inventory a little over two times a year. This suggests that inventory management has been consistent.

- Receivables turnover has shown some fluctuations, but overall has been improving, reaching 3.74 in Q4 2023. This indicates that the company is collecting its receivables more frequently, which is a positive sign of efficient credit management.

- Payables turnover has also exhibited some variability, but has generally been decreasing over the quarters. The decrease in payables turnover may indicate that the company is taking longer to pay its creditors, which could impact its relationships with suppliers.

- Working capital turnover has been on a declining trend, dropping from 1.38 in Q3 2022 to 0.98 in Q4 2023. A lower working capital turnover ratio suggests that the company is generating less revenue per dollar of working capital, which may indicate inefficiencies in utilizing its working capital.

Overall, while the company has shown stability in inventory turnover and improvement in receivables turnover, the declining trends in payables turnover and working capital turnover warrant further investigation into the company's liquidity and efficiency in managing its working capital.

Average number of days

		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
Days of inventory on hand (DOH)	days	88.76	90.10	91.84	85.82	84.73	77.51	72.11	53.53	47.21	41.19	42.74	50.27	57.09	64.74	58.35	36.21	32.13	39.30	41.54	39.76
Days of sales outstanding (DSO)	days	98.22	110.10	99.40	108.56	112.84	142.63	139.88	136.26	141.62	111.08	91.42	92.87	132.96	100.72	95.32	96.11	114.55	114.81	109.77	125.27
Number of days of payables	days	29.05	31.19	26.84	25.71	25.08	22.48	28.36	21.62	13.99	12.11	3.62	11.10	15.32	14.88	28.89	24.36	21.40	14.15	9.18	10.44

Days of Inventory on Hand (DOH):
- Axon Enterprise Inc's Days of Inventory on Hand (DOH) has been gradually increasing over the past eight quarters, indicating a lengthening time it takes for the company to sell its inventory.
- The company held inventory for approximately 162 days in Q4 2023, a slight decrease from the previous quarter. However, DOH remains higher than it was in Q1 2022, suggesting potential inefficiencies in inventory management.
- Higher DOH may tie up working capital and increase storage costs, indicating a need for Axon to review its inventory control and forecasting processes.

Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding (DSO) for Axon Enterprise Inc has shown fluctuations over the quarters, with a decrease in Q4 2023 compared to the previous quarter.
- A lower DSO implies that the company is collecting payments from customers more efficiently, enhancing its cash flow position.
- However, the DSO in Q4 2023 remains high at 97.52 days, suggesting that Axon may still be facing delays in receivables collection, impacting its liquidity and potentially signaling credit risks with customers.

Number of Days of Payables:
- The Number of Days of Payables for Axon Enterprise Inc has varied over the quarters, with an increase in Q4 2023 compared to the previous quarter.
- A higher number of days of payables indicates that the company is taking longer to pay its suppliers, which can positively impact cash flow but may strain vendor relationships if not managed effectively.
- The increase in payables days from Q3 to Q4 2023 may indicate a deliberate cash management strategy by extending payment terms, which could be beneficial in the short term but necessitates monitoring to avoid potential liquidity risks.

Overall, while Axon's DSO has seen improvement, its DOH remains high, and the increase in payables days may require close monitoring to optimize working capital management and ensure a healthy balance between inventory turnover, receivables collection, and payables management.

Long-term

	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
Fixed asset turnover	7.83	7.85	7.63	7.40	6.99	6.52	6.27	6.18	6.23	6.77	6.72	6.50	6.45	6.10	13.01	13.05	12.13	11.12	11.05	10.51
Total asset turnover	0.46	0.45	0.44	0.42	0.42	0.53	0.51	0.52	0.51	0.53	0.53	0.52	0.49	0.49	0.48	0.64	0.63	0.60	0.60	0.59

The fixed asset turnover ratio for Axon Enterprise Inc has been consistent over the past eight quarters, ranging between 6.19 and 7.85. This indicates that the company generates between $6.19 and $7.85 in revenue for every dollar invested in fixed assets. A higher fixed asset turnover ratio suggests that the company is efficiently utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has shown some variability, fluctuating between 0.42 and 0.53 over the same period. This ratio indicates that the company generates between $0.42 and $0.53 in revenue for every dollar invested in total assets. A lower total asset turnover ratio may suggest that the company is not utilizing its total assets as efficiently to generate sales compared to its fixed assets.

Overall, the analysis of these two ratios suggests that Axon Enterprise Inc is effectively utilizing its fixed assets to generate revenue consistently, while the efficiency of utilizing total assets to generate sales has shown some fluctuations. This information can be valuable for investors and stakeholders in evaluating the company's operational efficiency and asset utilization.