Axon Enterprise Inc. (AXON)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 454,844 | 598,545 | 353,684 | 356,332 | 155,440 |
| Short-term investments | US$ in thousands | 198,270 | 721,994 | 621,009 | 86,690 | 406,525 |
| Total current liabilities | US$ in thousands | 997,586 | 799,969 | 602,646 | 418,521 | 256,331 |
| Cash ratio | 0.65 | 1.65 | 1.62 | 1.06 | 2.19 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($454,844K
+ $198,270K)
÷ $997,586K
= 0.65
The cash ratio of Axon Enterprise Inc. has shown some fluctuations over the years based on the provided data.
As of December 31, 2020, the cash ratio stood at 2.19, indicating that the company had $2.19 in cash and cash equivalents for every $1 of current liabilities. This suggested a strong liquidity position at that point in time.
However, by the end of December 31, 2021, the cash ratio dropped to 1.06, signaling a decrease in the company's ability to cover its short-term obligations solely with cash and cash equivalents. This could imply a potential liquidity challenge or a shift in the company's cash management strategy.
Subsequently, the cash ratio improved in the following years, reaching 1.62 as of December 31, 2022, 1.65 as of December 31, 2023, and declining again to 0.65 by December 31, 2024. These fluctuations suggest varying degrees of financial stability and liquidity risk within the company across these years.
Overall, while the cash ratio provides insights into Axon Enterprise Inc.'s ability to meet its short-term obligations with cash on hand, it is important to consider other liquidity measures and financial indicators to gain a comprehensive understanding of the company's financial health and liquidity management practices.
Peer comparison
Dec 31, 2024