Axon Enterprise Inc. (AXON)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 677,113 | 673,967 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,612,030 | 1,268,490 | 1,047,850 | 976,255 | 543,495 |
| Debt-to-capital ratio | 0.30 | 0.35 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $677,113K ÷ ($677,113K + $1,612,030K)
= 0.30
The debt-to-capital ratio of Axon Enterprise Inc has shown a fluctuating trend over the past five years. In 2023, the ratio stands at 0.30, indicating that 30% of the company's capital structure is financed by debt. This represents a decrease from the previous year's ratio of 0.35. Notably, in both 2021, 2020, and 2019, the company reported a debt-to-capital ratio of zero, suggesting that the company operated without any debt financing during those years.
The decrease in the debt-to-capital ratio from 2022 to 2023 may signal a reduction in the company's reliance on debt to fund its operations or strategic initiatives. A lower debt-to-capital ratio can be viewed positively by investors and creditors as it signifies a lower financial risk for the company. However, it's crucial to analyze the context behind this change, such as the company's overall financial performance, capital structure strategy, and market conditions.
In conclusion, the debt-to-capital ratio of Axon Enterprise Inc has displayed variability over the past five years, with a recent decrease indicating a potential shift in the company's financing strategy. Further analysis and comparison with industry benchmarks are recommended to gain a more comprehensive understanding of the company's leverage position.
Peer comparison
Dec 31, 2023