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.