Garmin Ltd (GRMN)
Working capital 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 |
| Total current assets | US$ in thousands | 5,336,150 | 4,464,140 | 3,955,150 | 4,261,770 | 3,669,350 |
| Total current liabilities | US$ in thousands | 1,507,860 | 1,310,690 | 1,211,640 | 1,448,150 | 1,164,220 |
| Working capital turnover | 1.64 | 1.67 | 1.77 | 1.75 | 1.67 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,281,210K ÷ ($5,336,150K – $1,507,860K)
= 1.64
The working capital turnover for Garmin Ltd has shown a relatively stable trend over the past five years, ranging from 1.64 to 1.77. This ratio measures the efficiency of the company in utilizing its working capital to generate sales revenue.
The increasing trend from 1.67 in 2020 to 1.77 in 2022 indicates that Garmin has been able to improve its efficiency in utilizing its working capital to generate sales.
However, the slight decline in 2024 to 1.64 suggests a potential decrease in the efficiency of working capital utilization compared to the previous year. It is important for Garmin to carefully monitor its working capital management to ensure optimal efficiency in supporting the company's operations and growth.
Peer comparison
Dec 31, 2024