Garmin Ltd (GRMN)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	1,693,450	1,279,190	1,498,060	1,458,440	1,027,570
Short-term investments	US$ in thousands	274,618	173,288	347,980	387,642	376,463
Total current liabilities	US$ in thousands	1,310,690	1,211,640	1,448,150	1,164,220	1,035,930
Cash ratio		1.50	1.20	1.27	1.59	1.36

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,693,450K + $274,618K) ÷ $1,310,690K
= 1.50

The cash ratio of Garmin Ltd has fluctuated over the past five years. The ratio was 1.50 in 2023, up from 1.20 in 2022 but down from 1.59 in 2020. The ratio indicates that Garmin Ltd had sufficient cash and cash equivalents to cover its current liabilities in 2023. However, it is also important to note that a higher cash ratio does not always indicate better financial health, as excessively high cash levels may suggest that the company is not efficiently deploying its cash resources. Overall, the company's cash ratio has shown variability over the years, and it is important to consider other financial metrics in conjunction with the cash ratio to gain a comprehensive understanding of Garmin Ltd's liquidity position.