Garmin Ltd (GRMN)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,281,210 | 5,254,470 | 4,851,100 | 4,937,230 | 4,191,200 |
| Property, plant and equipment | US$ in thousands | 1,236,880 | 1,224,100 | 1,147,000 | 1,067,480 | 855,539 |
| Fixed asset turnover | 5.08 | 4.29 | 4.23 | 4.63 | 4.90 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,281,210K ÷ $1,236,880K
= 5.08
The fixed asset turnover ratio for Garmin Ltd has shown a relatively consistent trend over the past five years. Starting at 4.90 in December 31, 2020, it decreased to 4.63 by December 31, 2021, and continued to decrease to 4.23 by December 31, 2022. However, there was a slight improvement in the ratio to 4.29 by December 31, 2023. The ratio then exhibited a notable increase to 5.08 by December 31, 2024.
Overall, the fixed asset turnover ratio indicates how efficiently the company is utilizing its fixed assets to generate sales. The varying ratios over the years suggest fluctuations in the effectiveness of Garmin Ltd in generating revenue from its fixed assets. It is important for the company to continually monitor and improve this ratio to ensure optimal utilization of its fixed assets to drive profitability.
Peer comparison
Dec 31, 2024