Garmin Ltd (GRMN)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	5,246,720	5,096,320	4,940,900	4,827,700	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	3,748,274	3,578,152	3,462,914	3,399,351
Total current assets	US$ in thousands	4,464,140	4,156,910	4,111,000	3,964,000	3,955,150	3,968,120	4,122,620	4,082,200	4,261,770	4,008,970	3,883,760	3,557,920	3,669,350	3,341,870	3,258,440	2,928,890	3,057,850	2,757,840	2,460,580	2,512,140
Total current liabilities	US$ in thousands	1,310,690	1,327,800	1,449,650	1,008,200	1,211,640	1,442,920	1,623,890	1,152,500	1,448,150	1,373,940	1,458,830	933,125	1,164,220	1,122,960	1,163,930	781,872	1,035,930	1,042,960	1,027,700	622,526
Working capital turnover		1.66	1.80	1.86	1.63	1.77	1.94	1.98	1.73	1.76	1.86	2.00	1.68	1.67	1.77	1.78	1.78	1.85	2.09	2.42	1.80

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,246,720K ÷ ($4,464,140K – $1,310,690K)
= 1.66

The working capital turnover ratio for Garmin Ltd has fluctuated over the past few quarters, ranging from 1.63 to 2.42. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate revenue. A higher ratio is generally preferred as it signifies that the company is effectively leveraging its current assets to support its operations.

In the latest quarter, the working capital turnover ratio was 1.66, which indicates that for every dollar of working capital invested, Garmin generated $1.66 in revenue. This suggests a moderate level of efficiency in the utilization of working capital. It is important for the company to consistently monitor and manage its working capital to ensure optimal efficiency in its operations.

Overall, the fluctuation in the working capital turnover ratio for Garmin Ltd should be further analyzed to understand the underlying reasons and to make informed decisions regarding the company's working capital management strategies.