Garmin Ltd (GRMN)

Receivables 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
Receivables	US$ in thousands	983,404	922,034	808,446	694,690	815,243	721,137	716,802	—	656,847	641,072	698,859	599,733	843,445	639,345	737,268	558,192	849,469	658,000	523,901	500,242
Receivables turnover		6.39	6.50	6.99	7.89	6.45	7.08	6.90	—	7.38	7.63	7.09	8.43	5.87	7.68	6.58	7.88	4.92	5.97	7.12	7.64

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $6,281,160K ÷ $983,404K
= 6.39

The receivables turnover ratio measures how efficiently a company is able to collect its outstanding receivables within a specific period. A higher turnover ratio indicates that the company is collecting its receivables more quickly.

Analyzing Garmin Ltd's receivables turnover ratio over the past few years, we observe fluctuations in the ratio. From March 31, 2020, to September 30, 2021, the ratio ranged between 5.97 and 7.88, indicating a relatively stable collection period for receivables during that time frame.

However, in the subsequent quarters, the ratio showed more variability, with values ranging from 5.87 to 8.43 as of March 31, 2022. This suggests that the efficiency of Garmin's receivables collection may have been impacted by factors such as changes in credit policies, customer payment behavior, or economic conditions.

From March 31, 2022, onwards, the receivables turnover ratio has remained relatively steady, with values hovering around 7. This stability could indicate that Garmin has implemented measures to improve its receivables management processes or that external factors affecting receivables collection have stabilized.

Overall, while there have been fluctuations in Garmin's receivables turnover ratio over the years, maintaining a consistent and relatively high ratio is indicative of effective receivables management practices, which can help improve the company's cash flow and overall financial performance.