Axon Enterprise Inc. (AXON)

Debt-to-equity 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-equity ratio		0.42	0.44	0.47	0.48	0.53	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-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $677,113K ÷ $1,612,030K
= 0.42

The debt-to-equity ratio of Axon Enterprise Inc has been showing a decreasing trend over the past eight quarters. In Q4 2022, the ratio was at 0.53, indicating that the company had higher levels of debt relative to its equity. However, this ratio dropped significantly to 0.42 in Q4 2023, suggesting a more favorable financial position with lower debt levels compared to shareholder equity.

The decreasing trend in the debt-to-equity ratio can indicate that the company is gradually reducing its reliance on debt in favor of equity financing, which can be seen as a positive sign for investors and creditors. Lower levels of debt relative to equity can signify a lower financial risk for the company and potentially lead to improved financial stability.

It is worth noting that in Q2 and Q3 of 2022, the debt-to-equity ratio was recorded as 0.00, which could be attributed to certain accounting or reporting changes during those periods. Overall, the decreasing debt-to-equity ratio trend for Axon Enterprise Inc indicates a strengthening financial position and may be viewed positively by stakeholders.