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