Garmin Ltd (GRMN)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	5,246,720	5,096,320	4,940,900	4,827,700	4,850,560	4,890,830	4,957,220	5,058,410	4,952,040	4,911,850	4,854,200	4,399,994	4,178,615	3,929,445	3,728,516	3,823,804	3,748,274	3,578,152	3,462,914	3,399,351
Property, plant and equipment	US$ in thousands	1,224,100	1,187,380	1,180,650	1,165,040	1,147,000	1,100,260	1,113,560	1,092,520	1,067,480	974,981	957,924	861,382	855,539	813,561	791,175	754,549	728,921	710,591	702,108	672,299
Fixed asset turnover		4.29	4.29	4.18	4.14	4.23	4.45	4.45	4.63	4.64	5.04	5.07	5.11	4.88	4.83	4.71	5.07	5.14	5.04	4.93	5.06

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,246,720K ÷ $1,224,100K
= 4.29

Fixed asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its investment in fixed assets. Garmin Ltd has shown relatively consistent performance in this aspect over the past few quarters, with the ratio ranging from 4.14 to 5.14.

The higher the fixed asset turnover ratio, the better it is for the company as it indicates that the company is efficiently utilizing its fixed assets to generate sales. Garmin Ltd's fixed asset turnover has generally been in the range of 4.2 to 5.1, which suggests that the company is effectively using its fixed assets to generate sales revenue.

It is important to note that while a high fixed asset turnover ratio is generally favorable, a very high ratio could indicate that the company may be operating with too few assets which could potentially limit its growth potential. On the other hand, a low ratio could suggest inefficient utilization of fixed assets.

Overall, Garmin Ltd's fixed asset turnover ratio indicates a solid performance in effectively utilizing its fixed assets to generate revenue, which is an important aspect of financial health and operational efficiency.