Garmin Ltd (GRMN)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 3.54 | 3.30 | 2.89 | 4.04 | 3.41 | 3.13 | 2.84 | 3.93 | 3.26 | 2.75 | 2.54 | 3.54 | 2.94 | 2.92 | 2.66 | 3.81 | 3.15 | 2.98 | 2.80 | 3.75 |
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 fluctuated over the past few years, ranging from a low of 2.54 to a high of 4.04. The current ratio measures the company's ability to pay its short-term obligations with its short-term assets. A higher current ratio indicates a stronger liquidity position, as the company has more current assets available to cover its current liabilities.
Examining the trend of Garmin Ltd's current ratio, we observe that it generally remains above 2.5, which indicates that the company has a healthy level of current assets relative to its current liabilities. The current ratio peaked at 4.04 on March 31, 2024, suggesting a strong ability to meet its short-term obligations at that point in time. On the other hand, the current ratio decreased to a low of 2.54 on June 30, 2022, indicating a relatively tighter liquidity position.
Overall, Garmin Ltd has maintained a current ratio above 2.5 in most periods, which is typically considered acceptable. It is important to monitor the current ratio over time to ensure the company remains able to meet its short-term financial obligations.
Peer comparison
Dec 31, 2024