Garmin Ltd (GRMN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,079,470 | 1,693,450 | 1,279,190 | 1,498,060 | 1,458,440 |
| Short-term investments | US$ in thousands | 421,270 | 274,618 | 173,288 | 347,980 | 387,642 |
| Receivables | US$ in thousands | 983,404 | 815,243 | 656,847 | 843,445 | 849,469 |
| Total current liabilities | US$ in thousands | 1,507,860 | 1,310,690 | 1,211,640 | 1,448,150 | 1,164,220 |
| Quick ratio | 2.31 | 2.12 | 1.74 | 1.86 | 2.32 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,079,470K
+ $421,270K
+ $983,404K)
÷ $1,507,860K
= 2.31
The quick ratio of Garmin Ltd has shown a gradual decline over the years, decreasing from 2.32 in December 31, 2020, to 1.86 in December 31, 2021, and further down to 1.74 in December 31, 2022. This downward trend indicates a potential decrease in the company's ability to cover its short-term liabilities with its most liquid assets.
However, there was an improvement in the quick ratio in the subsequent years, reaching 2.12 in December 31, 2023, and 2.31 in December 31, 2024. This uptick suggests that Garmin Ltd has managed to strengthen its liquidity position, showing an increased ability to meet its short-term obligations with its liquid assets.
Overall, while there was a temporary dip in the quick ratio, Garmin Ltd managed to recover and improve its liquidity position over the years, indicating a more favorable ability to address short-term financial obligations.
Peer comparison
Dec 31, 2024