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.