Axon Enterprise Inc. (AXON)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 114.76 | 126.96 | 139.33 | 147.86 | 162.00 | 166.50 | 171.88 | 160.94 | 160.20 | 152.80 | 147.32 | 126.84 | 123.02 | 104.83 | 109.58 | 117.81 | 124.06 | 137.53 | 122.43 | 72.81 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 114.76 | 126.96 | 139.33 | 147.86 | 162.00 | 166.50 | 171.88 | 160.94 | 160.20 | 152.80 | 147.32 | 126.84 | 123.02 | 104.83 | 109.58 | 117.81 | 124.06 | 137.53 | 122.43 | 72.81 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 114.76 + — – —
= 114.76
The cash conversion cycle of Axon Enterprise Inc. has shown fluctuating trends over the period reported. The cash conversion cycle represents the number of days it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 2020 to December 2020, the cash conversion cycle ranged from 72.81 days to 137.53 days, showing inconsistency in managing its working capital efficiently. However, starting from March 2021 to June 2024, the company managed to reduce its cash conversion cycle gradually, indicating improved efficiency in managing its inventory, receivables, and payables.
The cash conversion cycle decreased to a low of 114.76 days by December 2024, showing that the company was able to optimize its working capital and convert it into cash faster. This reduction suggests that Axon Enterprise Inc. was able to streamline its operations, negotiate better payment terms with suppliers, and collect receivables more efficiently, ultimately improving its liquidity position.
Overall, the declining trend in the cash conversion cycle demonstrates that Axon Enterprise Inc. has been successful in managing its working capital effectively over the period, leading to improved cash flow generation and potential for sustainable growth.
Peer comparison
Dec 31, 2024