Axon Enterprise Inc. (AXON)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.00 | 3.15 | 3.38 | 3.33 | 3.00 | 2.79 | 2.70 | 2.44 | 2.65 | 2.96 | 3.96 | 4.11 | 3.83 | 3.39 | 3.65 | 3.17 | 3.12 | 3.13 | 3.51 | 3.46 |
| Quick ratio | 2.08 | 2.18 | 2.31 | 2.30 | 2.16 | 1.76 | 1.64 | 1.60 | 1.69 | 2.01 | 3.14 | 3.26 | 3.16 | 2.63 | 2.93 | 2.53 | 2.65 | 2.50 | 2.88 | 2.92 |
| Cash ratio | 1.55 | 1.56 | 1.71 | 1.69 | 1.55 | 0.79 | 0.77 | 0.86 | 0.89 | 1.31 | 2.40 | 2.48 | 2.19 | 1.96 | 2.29 | 1.77 | 1.79 | 1.69 | 2.06 | 2.01 |
Axon Enterprise Inc.'s liquidity ratios have shown a strong and consistent trend in the most recent quarters. The current ratio has improved from 3.00 in Q4 2022 to 3.33 in Q1 2023, indicating that the company has sufficient current assets to cover its current liabilities. The quick ratio has also increased from 2.66 in Q4 2022 to 2.97 in Q1 2023, suggesting that Axon Enterprise Inc. can meet its short-term obligations even if inventory is excluded.
Moreover, the cash ratio has been increasing steadily, from 2.07 in Q4 2022 to 2.36 in Q1 2023, showing that the company holds an increasing amount of cash and cash equivalents relative to its current liabilities. Overall, Axon Enterprise Inc. appears to have a strong liquidity position, with ample short-term assets to meet its short-term obligations.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Axon Enterprise Inc has shown some fluctuations over the past eight quarters. The company's cash conversion cycle, which represents the time it takes to convert its investments in inventory and other resources into cash flows from sales, ranged between 206.49 days and 250.99 days during this period.
In the most recent quarter, Q4 2023, the cash conversion cycle decreased to 206.49 days compared to Q3 2023, indicating an improvement in the efficiency of the company's working capital management. However, it is worth noting that the cycle had increased in the previous three quarters before this improvement.
Although Axon Enterprise Inc managed to reduce its cash conversion cycle in Q4 2023, its overall trend has been somewhat volatile, with fluctuations observed in each quarter. This suggests potential challenges in managing inventory levels, accounts receivable, and accounts payable efficiently throughout the business cycle.
Further analysis and monitoring of the cash conversion cycle will be crucial for Axon Enterprise Inc to ensure optimal working capital utilization and overall financial health in the future.