Garmin Ltd (GRMN)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	1,693,450	1,422,860	1,425,530	1,361,590	1,279,190	1,082,340	1,087,380	1,417,530	1,498,060	1,639,060	1,639,450	1,599,480	1,458,440	1,223,520	1,354,920	1,048,600	1,027,570	976,402	820,181	1,115,950
Short-term investments	US$ in thousands	274,618	273,050	253,689	188,878	173,288	378,705	526,639	375,237	347,980	345,214	330,567	342,656	387,642	430,164	380,880	391,646	376,463	300,542	239,765	197,385
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
Cash ratio		1.50	1.28	1.16	1.54	1.20	1.01	0.99	1.56	1.27	1.44	1.35	2.08	1.59	1.47	1.49	1.84	1.36	1.22	1.03	2.11

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 shown fluctuations over the past few quarters, ranging from 0.99 to 2.11. A higher cash ratio indicates that the company has a higher level of cash and cash equivalents relative to its current liabilities, suggesting a strong ability to cover short-term obligations without relying on external sources.

In particular, the cash ratio experienced a significant increase in the first quarter of 2022, reaching its peak at 2.11. This can indicate a period of increased liquidity and potentially conservative financial management. However, in subsequent quarters, the ratio decreased before fluctuating around the 1.20 to 1.60 range.

Overall, the cash ratio of Garmin Ltd demonstrates a generally healthy liquidity position, with the company maintaining a comfortable level of cash reserves to meet its short-term obligations. Monitoring this ratio over time can provide insights into the company's ability to weather financial uncertainties and manage its working capital effectively.