Garmin Ltd (GRMN)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,336,150 | 4,464,140 | 3,955,150 | 4,261,770 | 3,669,350 |
| Total current liabilities | US$ in thousands | 1,507,860 | 1,310,690 | 1,211,640 | 1,448,150 | 1,164,220 |
| Current ratio | 3.54 | 3.41 | 3.26 | 2.94 | 3.15 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,336,150K ÷ $1,507,860K
= 3.54
The current ratio of Garmin Ltd has shown a fluctuating trend over the past five years. As of December 31, 2020, the current ratio was 3.15, indicating that the company had $3.15 in current assets to cover every $1 in current liabilities. By December 31, 2021, the current ratio decreased slightly to 2.94, suggesting a slight weakening in the company's ability to meet its short-term obligations.
However, in the following years, the current ratio improved, reaching 3.26 by December 31, 2022, 3.41 by December 31, 2023, and 3.54 by December 31, 2024. These increases indicate that Garmin Ltd had enhanced its liquidity position, with more current assets available to cover its current liabilities, providing a stronger indication of the company's ability to meet its short-term financial obligations. Overall, the current ratio trend suggests that Garmin Ltd's liquidity position has generally improved over the past five years, reflecting positively on the company's financial stability.
Peer comparison
Dec 31, 2024