Axon Enterprise Inc. (AXON)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,436,840 | 2,851,890 | 1,688,210 | 1,381,020 | 845,639 |
| Total stockholders’ equity | US$ in thousands | 1,612,030 | 1,268,490 | 1,047,850 | 976,255 | 543,495 |
| Financial leverage ratio | 2.13 | 2.25 | 1.61 | 1.41 | 1.56 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,436,840K ÷ $1,612,030K
= 2.13
Based on the financial leverage ratio data provided for Axon Enterprise Inc from 2019 to 2023, we observe fluctuations in the company's level of financial leverage. The financial leverage ratio represents the extent to which a company is utilizing debt to finance its operations.
Between December 31, 2019, and December 31, 2023, Axon's financial leverage ratio ranged from 1.41 to 2.25. This indicates that the company's reliance on debt relative to equity has varied over the years.
In 2020, the financial leverage ratio was 1.41, reflecting a lower level of debt compared to equity in the company's capital structure. This increased to 2.25 in 2022, highlighting a significant uptick in the usage of debt financing. By the end of 2023, the ratio decreased slightly to 2.13, showing a moderation in the company's debt relative to equity position.
Overall, the trend suggests that Axon has experienced fluctuations in its financial leverage, with the ratio peaking in 2022. Investors and stakeholders may view this changing leverage position as indicative of varying strategies in capital structure management and risk appetite over the years. Further analysis of the company's debt management policies and financial health would be essential to fully understand the implications of these fluctuations in the financial leverage ratio.
Peer comparison
Dec 31, 2023