Garmin Ltd (GRMN)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	6,281,160	5,991,650	5,653,490	5,483,240	5,254,540	5,104,140	4,948,720	4,835,520	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
Property, plant and equipment	US$ in thousands	1,236,880	1,220,110	1,206,020	1,206,400	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
Fixed asset turnover		5.08	4.91	4.69	4.55	4.29	4.30	4.19	4.15	4.23	4.45	4.45	4.63	4.64	5.04	5.07	5.11	4.88	4.83	4.71	5.07

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,281,160K ÷ $1,236,880K
= 5.08

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its fixed assets. In the case of Garmin Ltd, the fixed asset turnover ratio has shown fluctuations over the reported periods. The ratio was relatively high at the beginning of the data series, reaching 5.11 on March 31, 2021, indicating that the company was able to generate $5.11 in revenue for every dollar invested in fixed assets.

However, the ratio declined thereafter, dipping to a low of 4.15 on March 31, 2023. This downward trend suggests that Garmin's efficiency in utilizing its fixed assets to generate revenue weakened during this period. The ratio saw some fluctuations in the subsequent quarters but generally stayed between 4.15 and 5.08.

Overall, the trend in Garmin's fixed asset turnover indicates some variability in the company's ability to generate sales from its fixed assets efficiently. Further analysis of the reasons behind these fluctuations would be needed to provide a more in-depth assessment of the company's operational performance and asset utilization strategies.