Axon Enterprise Inc. (AXON)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.20 | 0.24 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.30 | 0.35 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.42 | 0.53 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.13 | 2.25 | 1.61 | 1.41 | 1.56 |
The solvency ratios of Axon Enterprise Inc provide insights into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a decreasing trend over the years, indicating a lower reliance on debt to finance its assets. In 2023, the ratio stands at 0.20, suggesting that only 20% of the company's assets are funded by debt.
Similarly, the debt-to-capital and debt-to-equity ratios have also exhibited a decreasing trend, with values of 0.30 and 0.42 in 2023, respectively. These ratios signify the proportion of the company's capital and equity financed by debt, with lower ratios indicating a smaller reliance on debt financing.
The financial leverage ratio has shown fluctuations over the years, reaching 2.13 in 2023. This ratio indicates the extent to which the company uses debt to support its operations, with a higher ratio suggesting higher financial risk.
Overall, the solvency ratios of Axon Enterprise Inc show a decreasing reliance on debt financing and an improving ability to meet its long-term financial obligations, which may enhance the company's financial stability and resilience in the long run.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | -32.23 | -4.23 | -17.71 |
Based on the provided data, the interest coverage ratio for Axon Enterprise Inc is not available for the years 2019 to 2023. The interest coverage ratio is a measure of a company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). The absence of this ratio data makes it challenging to assess the company's ability to cover its interest expenses with its operating income over the past five years. It is crucial for investors and creditors to monitor this ratio to evaluate the financial health and risk of a company.