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 | ||
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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