Axon Enterprise Inc. (AXON)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,576,710	1,185,750	858,072	679,336	528,619
Total current assets	US$ in thousands	2,396,650	1,805,280	1,109,490	981,952	609,475
Total current liabilities	US$ in thousands	799,969	602,646	418,521	256,331	195,566
Working capital turnover		0.99	0.99	1.24	0.94	1.28

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,576,710K ÷ ($2,396,650K – $799,969K)
= 0.99

The working capital turnover for Axon Enterprise Inc has shown some fluctuations over the past five years. The ratio indicates the efficiency of the company in utilizing its working capital to generate revenue. A higher ratio is generally preferred as it suggests that the company is generating more revenue per unit of working capital.

In this case, we observed that the working capital turnover was 0.98 in 2023, which decreased slightly from 0.99 in 2022. This decrease may indicate a slight inefficiency in utilizing working capital to generate revenue. However, it is crucial to note that the ratio remains relatively stable within a close range over the past five years, with the highest being 1.25 in 2021 and 2019.

Overall, while the company's working capital turnover has seen some variations, it has generally maintained a reasonable level of efficiency in converting working capital into revenue. Further analysis and comparison with industry averages or peers may provide more insights into the company's performance in this aspect.