Garmin Ltd (GRMN)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	815,243	656,847	843,445	849,469	706,763
Total current liabilities	US$ in thousands	1,310,690	1,211,640	1,448,150	1,164,220	1,035,930
Quick ratio		2.12	1.74	1.86	2.32	2.04

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,693,450K + $274,618K + $815,243K) ÷ $1,310,690K
= 2.12

The quick ratio of Garmin Ltd has shown fluctuations over the past five years. The quick ratio indicates the company's ability to cover its short-term obligations with its most liquid assets.

In 2023, the quick ratio is 2.12, indicating that Garmin has $2.12 of liquid assets available to cover each dollar of current liabilities, which is a strong position. The increase from 2022 suggests an improvement in the company's liquidity position.

However, compared to the previous years, the quick ratio was higher in 2020 at 2.32 and in 2019 at 2.04. This indicates that Garmin had higher levels of liquid assets relative to current liabilities in those years.

Overall, the quick ratio trend for Garmin Ltd has been relatively healthy over the years, with the company maintaining a strong ability to meet its short-term obligations using its liquid assets.