Garmin Ltd (GRMN)
Receivables 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 |
| Receivables | US$ in thousands | 983,404 | 815,243 | 656,847 | 843,445 | 849,469 |
| Receivables turnover | 6.39 | 6.45 | 7.39 | 5.85 | 4.93 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,281,210K ÷ $983,404K
= 6.39
The receivables turnover ratio for Garmin Ltd has shown a positive trend over the past five years. In December 31, 2020, the ratio was 4.93, indicating that on average, the company collected its accounts receivable almost 5 times during the year. This ratio increased to 5.85 by December 31, 2021, showing an improvement in the company's efficiency in collecting outstanding receivables.
By December 31, 2022, the receivables turnover ratio further improved to 7.39, suggesting that Garmin Ltd was able to collect its receivables more than 7 times within the year, showcasing strong efficiency in managing its accounts receivable. The ratio slightly decreased to 6.45 by December 31, 2023, but still remained at a healthy level.
As of December 31, 2024, the receivables turnover ratio stood at 6.39, indicating that the company continued to effectively collect its outstanding receivables throughout the year.
Overall, the increasing trend in the receivables turnover ratio demonstrates Garmin Ltd's effectiveness in managing its credit sales and collecting payments from its customers in a timely manner, which is a positive indicator of the company's liquidity and operational efficiency.
Peer comparison
Dec 31, 2024