Garmin Ltd (GRMN)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	5,254,470	4,851,100	4,937,230	4,191,200	3,740,940
Property, plant and equipment	US$ in thousands	1,224,100	1,147,000	1,067,480	855,539	728,921
Fixed asset turnover		4.29	4.23	4.63	4.90	5.13

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,254,470K ÷ $1,224,100K
= 4.29

The fixed asset turnover ratio for Garmin Ltd has shown a decreasing trend over the past five years, declining from 5.13 in 2019 to 4.29 in 2023. This indicates that the company's efficiency in generating sales from its investment in fixed assets has been gradually decreasing.

A high fixed asset turnover ratio is generally preferred as it signifies that a company is effectively utilizing its fixed assets to generate revenue. The decreasing trend in Garmin's fixed asset turnover may raise concerns about the company's asset management efficiency and utilization.

It is important for Garmin to closely monitor and potentially improve its fixed asset turnover ratio to ensure optimal utilization of its fixed assets and maximize revenue generation from its investments. Further analysis of the company's operational and financial performance may provide insights into the underlying reasons for the declining ratio and help in formulating strategies to address this trend.