Garmin Ltd (GRMN)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	5,254,470	4,851,100	4,937,230	4,191,200	3,740,940
Total current assets	US$ in thousands	4,464,140	3,955,150	4,261,770	3,669,350	3,057,850
Total current liabilities	US$ in thousands	1,310,690	1,211,640	1,448,150	1,164,220	1,035,930
Working capital turnover		1.67	1.77	1.75	1.67	1.85

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,254,470K ÷ ($4,464,140K – $1,310,690K)
= 1.67

Based on the data provided, we can see that Garmin Ltd's working capital turnover has fluctuated over the last five years. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio typically indicates better efficiency in utilizing working capital.

In this case, Garmin Ltd's working capital turnover has ranged from 1.67 to 1.85 over the five-year period. The trend shows some variability, with the ratio peaking in 2019 at 1.85 and experiencing some fluctuations in the following years. Although a ratio above 1 generally suggests that the company is effectively using its working capital to generate sales, the deviations from year to year may indicate changes in the company's working capital management practices or sales performance.

Overall, Garmin Ltd's working capital turnover ratio has remained relatively stable within a moderate range over the last five years, indicating that the company has been able to efficiently convert its working capital into sales revenue. Further analysis of the company's working capital components and business operations could provide additional insights into the factors influencing this ratio.