Garmin Ltd (GRMN)

Number of days of payables

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
Payables turnover 10.41 9.45 10.20 13.29 12.29 11.35 11.63 13.83 13.46 9.99 8.39 9.00 6.97 8.51 8.68 9.62 8.92 9.27 10.83 10.55
Number of days of payables days 35.07 38.61 35.77 27.46 29.70 32.17 31.40 26.39 27.11 36.55 43.51 40.56 52.39 42.87 42.06 37.95 40.90 39.36 33.71 34.59

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.41
= 35.07

The number of days of payables for Garmin Ltd has shown fluctuations over the past few years. It was around 34-40 days between March 2020 and March 2022, indicating that the company took approximately a month to pay off its trade payables.

However, the trend shifted in the latter half of 2022 and into 2023, where the number of days of payables decreased significantly to around 26-32 days. This may suggest that Garmin was managing its payables more efficiently during this period.

From June 2023 to September 2024, the number of days of payables increased gradually, reaching around 35-38 days by the end of 2024. This rise may indicate a change in Garmin's payment policies or supplier relationships during this timeframe.

It is important to note that a lower number of days of payables generally indicates that a company is paying its bills more quickly, while a higher number of days suggests a longer time taken to settle its payables. Each change in the number of days of payables may reflect different strategies or circumstances within Garmin Ltd's financial management.