Axon Enterprise Inc. (AXON)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 217,659 | 178,082 | 151,980 | 106,251 | 131,855 | 105,855 | 74,925 | 106,568 | 80,322 | 30,957 | 9,664 | -103,709 | -169,609 | -135,282 | -143,621 | -63,612 | -14,150 | -34,611 | -22,546 | -10,165 |
| Interest expense (ttm) | US$ in thousands | 7,098 | 7,068 | 7,222 | 57,719 | 57,687 | 68,081 | 77,530 | 72,188 | 125,763 | 119,104 | 113,385 | 108,200 | 53,486 | 51,221 | 47,731 | 7,503 | 7,859 | 7,080 | 6,860 | 7,092 |
| Interest coverage | 30.66 | 25.20 | 21.04 | 1.84 | 2.29 | 1.55 | 0.97 | 1.48 | 0.64 | 0.26 | 0.09 | -0.96 | -3.17 | -2.64 | -3.01 | -8.48 | -1.80 | -4.89 | -3.29 | -1.43 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $217,659K ÷ $7,098K
= 30.66
The interest coverage ratio of Axon Enterprise Inc. has shown significant fluctuations over the reported periods. The interest coverage ratio is a measure of a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a stronger ability to meet interest obligations.
From March 31, 2020, to December 31, 2022, the company consistently had negative interest coverage ratios, indicating that Axon Enterprise Inc. was not generating enough operating income to cover its interest expenses during these periods. This could be a concern for creditors and investors as it suggests a heightened risk of default on debt obligations.
However, starting from March 31, 2023, there was a positive turnaround in the interest coverage ratio, with the figure gradually increasing and reaching significantly higher levels by December 31, 2024. This improvement indicates that the company's operating income was more than sufficient to cover its interest expenses during these periods, reflecting a stronger financial position.
The sudden increase in the interest coverage ratio from June 30, 2024 to December 31, 2024 is particularly noteworthy, as it shows a substantial improvement in the company's ability to manage its debt obligations and signals a positive financial performance trend.
Overall, the trend of the interest coverage ratio for Axon Enterprise Inc. suggests that the company has made strides in enhancing its financial health and ability to meet interest payments, which may lead to improved investor confidence and favorable credit ratings.
Peer comparison
Dec 31, 2024