Garmin Ltd (GRMN)
Working capital 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 |
| Total current assets | US$ in thousands | 5,336,150 | 5,209,500 | 4,697,220 | 4,517,280 | 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 |
| Total current liabilities | US$ in thousands | 1,507,860 | 1,578,660 | 1,624,320 | 1,117,390 | 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 |
| Working capital turnover | 1.64 | 1.65 | 1.84 | 1.61 | 1.67 | 1.80 | 1.86 | 1.64 | 1.77 | 1.94 | 1.98 | 1.73 | 1.76 | 1.86 | 2.00 | 1.68 | 1.67 | 1.77 | 1.78 | 1.78 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,281,160K ÷ ($5,336,150K – $1,507,860K)
= 1.64
The working capital turnover of Garmin Ltd has shown some fluctuations over the past few years. The ratio was relatively stable around 1.7 to 1.8 from March 2020 to March 2022, indicating that the company was able to generate revenue approximately 1.7 to 1.8 times for each dollar of working capital invested.
However, there was a noticeable increase in the working capital turnover in June 2022 to 2.00, suggesting that the company became more efficient in utilizing its working capital to generate revenue. This improvement was sustained until September 2022, with a ratio of 1.94, indicating continued efficiency in generating revenue.
Subsequently, there was a slight decline in the working capital turnover ratio from September 2022 to December 2024, hovering around 1.6 to 1.8. This may indicate a slight decrease in the efficiency of the company in utilizing its working capital to generate revenue during this period.
Overall, the working capital turnover ratio of Garmin Ltd has shown variability but generally reflects the company's ability to efficiently generate revenue relative to its investments in working capital. It is important for the company to monitor this ratio to ensure optimal utilization of its working capital resources.
Peer comparison
Dec 31, 2024