Axon Enterprise Inc. (AXON)

Short-term

Turnover ratios

Based on the data provided, let's analyze Axon Enterprise Inc.'s activity ratios:

1. Inventory Turnover:
- Axon's inventory turnover has been decreasing over the years, indicating that the company is selling its inventory at a slower rate.
- A high inventory turnover ratio is generally preferred as it shows efficient inventory management. However, in this case, the decreasing trend may suggest potential issues with sales or excess inventory levels.

2. Receivables Turnover:
- The information on receivables turnover is missing from the data provided, which makes it difficult to evaluate the efficiency of Axon's collection of accounts receivable.
- A higher receivables turnover ratio would signify more efficient collection of receivables, while a lower ratio could indicate issues with collecting payments from customers.

3. Payables Turnover:
- Similar to receivables turnover, data on payables turnover is not provided, so we are unable to assess how quickly Axon pays its suppliers.
- A higher payables turnover ratio would suggest the company is paying its suppliers more quickly, while a lower ratio could indicate potential cash flow issues or strained supplier relationships.

4. Working Capital Turnover:
- Axon's working capital turnover has been fluctuating over the years, showing variability in how effectively the company is utilizing its working capital to generate sales.
- A higher working capital turnover ratio would indicate efficient use of working capital, while a lower ratio could point to inefficiencies in managing working capital or inadequate sales generation.

In conclusion, based on the activity ratios provided, Axon Enterprise Inc. may need to address issues related to inventory turnover and monitor its working capital turnover to ensure optimal utilization of resources. However, the lack of data on receivables and payables turnovers limits a comprehensive assessment of the company's overall efficiency in managing its assets and liabilities.

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Average number of days

Based on the data provided, let's analyze the activity ratios for Axon Enterprise Inc.:

1. Days of Inventory on Hand (DOH):
- The trend in the days of inventory on hand shows an increase over the past few years, starting at 72.81 days on March 31, 2020, and peaking at 171.88 days on June 30, 2023.
- This indicates that Axon Enterprise Inc. has been holding inventory for longer periods, which could tie up working capital and lead to potential obsolescence risks.
- There was a slight decline in the DOH to 114.76 days on December 31, 2024, which might suggest improved inventory management practices.

2. Days of Sales Outstanding (DSO):
- The data does not provide information on the days of sales outstanding for Axon Enterprise Inc., suggesting that specific data on accounts receivable turnover is not available for analysis.
- Without DSO figures, it is challenging to assess how quickly the company is collecting its accounts receivable and converting sales into cash.

3. Number of Days of Payables:
- Similarly, the data does not include information on the number of days of payables for Axon Enterprise Inc., indicating that details on the company's accounts payable turnover are not available for evaluation.
- Without this data, it is difficult to determine how long the company takes to pay its suppliers and manage its working capital effectively.

In conclusion, while the analysis of the days of inventory on hand reveals fluctuations in inventory management efficiency for Axon Enterprise Inc., the absence of data on DSO and payables limits a comprehensive assessment of the company's overall activity ratios and working capital management. Additional information on accounts receivable and payable turnover is necessary to provide a more thorough analysis of Axon's operational performance.

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See also:

Axon Enterprise Inc. Short-term (Operating) Activity Ratios (Quarterly Data)

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Long-term

Axon Enterprise Inc.'s fixed asset turnover ratio has shown fluctuations over the years, indicating the efficiency of the company in generating sales from its fixed assets. The ratio started at a high of 13.05 in March 2020 and gradually decreased to a low of 5.49 in June 2021. It then began to increase from September 2021 until December 2022, before stabilizing around 6. In the most recent period, the fixed asset turnover ratio saw an uptick to 7.39 in March 2023, indicating improved efficiency in utilizing fixed assets to generate revenue.

On the other hand, the total asset turnover ratio reflects how well the company generates sales from all its assets. Axon's total asset turnover ratio started at a low of 0.64 in March 2020, decreased to 0.42 by December 2022, before gradually increasing to 0.48 in June 2024. This suggests that the company has become more efficient in utilizing its total assets to generate revenue.

Overall, while the fixed asset turnover ratio indicates how efficiently the company is utilizing its fixed assets, the total asset turnover ratio provides a broader perspective on the company's asset management efficiency. The trends in both ratios give insights into Axon Enterprise Inc.'s ability to generate sales in relation to its asset base over the years.

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See also:

Axon Enterprise Inc. Long-term (Investment) Activity Ratios (Quarterly Data)