Axon Enterprise Inc. (AXON)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.92 | 1.91 | 1.94 | 1.99 | 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 |
Axon Enterprise Inc. has consistently maintained a strong solvency position over the past few years, as evidenced by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have remained at 0.00. This indicates that the company's level of debt in relation to its assets, capital, and equity is negligible or non-existent.
The financial leverage ratio, which measures the proportion of a company's assets that are financed by debt, has shown some fluctuations over the period under consideration. The ratio started at 1.57 in March 2020, decreased to 1.39 by March 2021, and then showed an increasing trend, reaching a peak of 2.25 in December 2022. However, the ratio subsequently decreased, stabilizing around 1.91-2.00 by the end of 2024. Overall, while there was some fluctuation, the financial leverage ratio remained within a reasonable range, indicating that the company's debt levels were manageable and not overly burdensome.
In summary, Axon Enterprise Inc. demonstrates a strong solvency position with minimal debt levels relative to its assets, capital, and equity. The company's financial leverage ratio, while showing some variability, stayed within acceptable limits, indicating a reasonable balance between debt and equity financing.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage ratio indicates the company's ability to meet interest payments on its debt using its operating income. A higher interest coverage ratio is favorable as it suggests the company is more capable of servicing its debt obligations.
From March 31, 2020, to June 30, 2022, Axon Enterprise Inc. had negative interest coverage ratios, indicating the company was unable to cover its interest expenses with its operating income during those periods. This raised concerns about its financial health and ability to meet debt obligations.
Starting from September 30, 2022, the interest coverage ratio began to improve, turning positive. This trend continued through December 31, 2024, with significant increases seen in June 30, 2024, September 30, 2024, and December 31, 2024. The interest coverage ratio reaching 30.66 as of December 31, 2024, indicates a notable improvement in the company's ability to cover its interest payments.
Overall, the trend of increasing interest coverage ratios from negative to positive values signifies a positive development in Axon Enterprise Inc.'s financial position and implies a strengthened capability to meet its interest expenses. This improvement suggests that the company may be in a better position to manage its debt and financial obligations in the coming periods.