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.


Peer comparison

Dec 31, 2023


See also:

Axon Enterprise Inc. Cash Conversion Cycle (Quarterly Data)