Axon Enterprise Inc. (AXON)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 997,586 | 799,969 | 602,646 | 418,521 | 256,331 |
| Quick ratio | 0.65 | 1.65 | 1.62 | 1.06 | 2.19 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($454,844K
+ $198,270K
+ $—K)
÷ $997,586K
= 0.65
The quick ratio of Axon Enterprise Inc. has shown varying trends over the past five years. As of December 31, 2020, the quick ratio was healthy at 2.19, indicating a strong ability to meet its short-term financial obligations using its most liquid assets. However, this ratio declined significantly to 1.06 by December 31, 2021, raising concerns about the company's liquidity position.
There was a notable improvement in the quick ratio to 1.62 by December 31, 2022, suggesting a recovery in the company's short-term liquidity. The ratio further increased slightly to 1.65 by December 31, 2023, indicating the company's continued effort to strengthen its ability to cover immediate liabilities.
However, by December 31, 2024, the quick ratio dropped substantially to 0.65, which may raise red flags regarding the company's liquidity position and its ability to meet short-term obligations using its quick assets.
Overall, the quick ratio trend for Axon Enterprise Inc. fluctuated over the five-year period, showing both periods of strength and potential weaknesses in the company's short-term liquidity position. Investors and stakeholders may want to closely monitor this ratio to assess the company's financial health and ability to withstand short-term challenges.
Peer comparison
Dec 31, 2024