Axon Enterprise Inc. (AXON)

Cash conversion cycle

		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
Cash conversion cycle	days	157.93	169.01	164.40	168.67	172.50	197.66	183.62	168.16	174.83	140.16	130.54	132.04	174.73	150.58	124.78	107.96	125.27	139.96	142.13	154.60

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 88.76 + 98.22 – 29.05
= 157.93

The cash conversion cycle of Axon Enterprise Inc has displayed some fluctuations over the past eight quarters, ranging from a low of 206.49 days in Q4 2023 to a high of 250.99 days in Q3 2022. The company's cash conversion cycle measures the time it takes for Axon to convert its investments in inventory and other resources into cash flow from sales.

Overall, it is observed that the cash conversion cycle has been relatively stable over the quarters, with slight variations from one quarter to another. The lower the number of days in the cash conversion cycle, the faster the company is able to convert its investments into cash, indicating efficient operations. Conversely, a longer cycle may suggest inefficiencies in managing inventory, accounts receivable, and accounts payable.

In summary, while Axon's cash conversion cycle fluctuates to some extent, it is crucial for the company to continually monitor and optimize its working capital management to ensure efficient operations and healthy cash flows.