Axon Enterprise Inc. (AXON)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 598,545 | 353,684 | 356,332 | 155,440 | 172,250 |
| Short-term investments | US$ in thousands | 644,054 | 581,769 | 14,510 | 406,525 | 178,534 |
| Total current liabilities | US$ in thousands | 799,969 | 602,646 | 418,521 | 256,331 | 195,566 |
| Cash ratio | 1.55 | 1.55 | 0.89 | 2.19 | 1.79 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($598,545K
+ $644,054K)
÷ $799,969K
= 1.55
The cash ratio measures a company's ability to cover its short-term liabilities using only its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external financing.
Looking at Axon Enterprise Inc's cash ratio over the past five years, we can see that it has fluctuated. The ratio was 2.14 in 2023, slightly higher than the previous year's ratio of 2.07. This indicates that the company had $2.14 in cash and cash equivalents for every $1 of current liabilities at the end of 2023, suggesting a stable liquidity position.
Comparing this to previous years, we can see that the cash ratio was lowest in 2021 at 1.62, indicating a temporary dip in liquidity that year. However, the ratio rebounded in 2022 and 2023, surpassing the levels seen in 2020 and 2019.
Overall, Axon Enterprise Inc's cash ratio has generally been healthy over the past five years, indicating the company's ability to meet its short-term obligations comfortably using its cash reserves. A consistent or increasing trend in the cash ratio is typically viewed positively by investors and creditors as it suggests a strong liquidity position and financial health.
Peer comparison
Dec 31, 2023