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.
Peer comparison
Dec 31, 2023