Axon Enterprise Inc. (AXON)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,474,590 | 3,436,840 | 2,851,890 | 1,688,210 | 1,381,020 |
| Total stockholders’ equity | US$ in thousands | 2,327,660 | 1,612,030 | 1,268,490 | 1,047,850 | 976,255 |
| Financial leverage ratio | 1.92 | 2.13 | 2.25 | 1.61 | 1.41 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,474,590K ÷ $2,327,660K
= 1.92
The financial leverage ratio of Axon Enterprise Inc. has shown an increasing trend over the years, indicating a higher level of financial leverage.
As of December 31, 2020, the financial leverage ratio was 1.41, indicating that the company had $1.41 of debt for every $1 of equity. By December 31, 2021, the ratio had increased to 1.61, suggesting a slight increase in leverage.
In the following years, the financial leverage ratio continued to rise significantly. By December 31, 2022, the ratio reached 2.25, signifying that the company had $2.25 of debt for every $1 of equity. Although the ratio decreased slightly to 2.13 by December 31, 2023, it remained at a relatively high level.
As of December 31, 2024, the financial leverage ratio stood at 1.92, showing a decrease from the peak in 2022 but still indicating a significant level of financial leverage.
Overall, the increasing trend in the financial leverage ratio of Axon Enterprise Inc. suggests that the company has been relying more on debt financing compared to equity financing in recent years. This could potentially increase the company's financial risk and interest expenses, which are important factors investors consider when evaluating the company's financial health.
Peer comparison
Dec 31, 2024