Axon Enterprise Inc. (AXON)

Financial leverage 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
Total assets US$ in thousands 3,436,840 3,254,180 3,077,400 3,007,950 2,851,890 2,010,430 1,932,020 1,772,450 1,688,210 1,645,390 1,526,890 1,404,860 1,381,020 1,279,150 1,232,910 877,451 845,639 792,304 746,370 739,195
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
Financial leverage ratio 2.13 2.14 2.13 2.14 2.25 1.63 1.62 1.58 1.61 1.48 1.39 1.39 1.41 1.43 1.42 1.57 1.56 1.56 1.53 1.54

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,436,840K ÷ $1,612,030K
= 2.13

The financial leverage ratio of Axon Enterprise Inc has been relatively stable in the recent quarters, ranging between 2.13 and 2.25. This indicates that the company is using debt to finance its operations, with a higher ratio suggesting a higher level of debt compared to equity in its capital structure.

The upward trend in the financial leverage ratio from Q1 2022 to Q4 2022, followed by a more stable range in Q1 2023 to Q4 2023, may indicate a period of increased debt usage by the company, potentially for expansion or other strategic initiatives.

It is important to note that while utilizing debt can provide tax advantages and leverage returns, it also increases financial risk, especially in times of economic uncertainty or rising interest rates. Monitoring the financial leverage ratio along with other financial metrics is essential to assess Axon Enterprise Inc's overall financial health and risk profile.


Peer comparison

Dec 31, 2023

Company name
Symbol
Financial leverage ratio
Axon Enterprise Inc.
AXON
2.13
National Presto Industries Inc
NPK
1.24
Sturm Ruger & Company Inc
RGR
1.20
Vista Outdoor Inc
VSTO
2.13

See also:

Axon Enterprise Inc. Financial Leverage (Quarterly Data)