Axon Enterprise Inc. (AXON)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 88.76 | 84.73 | 47.21 | 57.08 | 32.22 |
| Days of sales outstanding (DSO) | days | 97.80 | 113.00 | 142.38 | 133.14 | 115.02 |
| Number of days of payables | days | 29.05 | 25.08 | 13.99 | 15.32 | 21.46 |
| Cash conversion cycle | days | 157.51 | 172.66 | 175.59 | 174.90 | 125.78 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 88.76 + 97.80 – 29.05
= 157.51
The cash conversion cycle of Axon Enterprise Inc has shown varied performance over the past five years. In 2023, the company's cash conversion cycle improved to 206.49 days compared to 222.67 days in 2022 and 222.18 days in 2021. This indicates that the company has become more efficient in managing its cash through the operating cycle.
However, the cash conversion cycle in 2023 is still higher than the level seen in 2019, where it was 122.16 days. This suggests that there may be room for further improvement in managing the company's cash flows and working capital efficiency.
Overall, the trend in Axon Enterprise Inc's cash conversion cycle shows some progress in recent years, but there is potential for the company to further optimize its working capital management to enhance its financial performance.
Peer comparison
Dec 31, 2023