Axon Enterprise Inc. (AXON)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 677,113 | 676,315 | 675,518 | 674,724 | 673,967 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,612,030 | 1,521,120 | 1,445,000 | 1,403,000 | 1,268,490 | 1,231,310 | 1,193,650 | 1,124,790 | 1,047,850 | 1,113,900 | 1,097,700 | 1,010,900 | 976,255 | 895,153 | 869,813 | 559,590 | 543,495 | 507,647 | 488,927 | 480,539 |
| Debt-to-capital ratio | 0.30 | 0.31 | 0.32 | 0.32 | 0.35 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 been consistently trending higher over the past eight quarters, indicating an increase in the proportion of debt relative to the total capital employed by the company. The ratio stood at 0.30 in Q4 2023, showing a slight decrease from the previous quarter but remaining relatively elevated compared to earlier periods.
The notable rise in the debt-to-capital ratio from 0.00 in Q3 and Q2 of 2022 to 0.35 in Q4 2022 suggests a significant uptick in the company's reliance on debt financing during that period. Subsequently, the ratio has gradually decreased but still maintained levels above 0.30 in the following quarters.
The increasing trend in the debt-to-capital ratio may indicate that Axon Enterprise Inc has been actively leveraging debt to fund its operations, investments, or growth initiatives. While a higher debt-to-capital ratio can potentially enhance returns, it also exposes the company to greater financial risk, particularly in terms of debt repayment obligations and interest costs. Therefore, it is essential for investors and stakeholders to monitor this ratio closely to assess the company's financial leverage and solvency position.
Peer comparison
Dec 31, 2023