Garmin Ltd (GRMN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 57.19% | 57.86% | 58.54% | 59.20% | 59.72% |
| Operating profit margin | 20.79% | 21.19% | 24.68% | 25.15% | 25.28% |
| Pretax margin | 22.84% | 21.95% | 24.44% | 26.33% | 26.39% |
| Net profit margin | 24.54% | 20.07% | 21.92% | 23.68% | 25.46% |
Garmin Ltd's profitability ratios based on the data provided suggest a mixed performance over the past five years.
1. Gross Profit Margin: The company's gross profit margin has shown a slight declining trend from 59.72% in 2019 to 57.19% in 2023. This indicates a decrease in its ability to generate revenue after deducting the cost of goods sold.
2. Operating Profit Margin: The operating profit margin has also witnessed a decrease from 25.28% in 2019 to 20.79% in 2023. This implies a decline in the efficiency of the company in managing its operating expenses to generate profits.
3. Pretax Margin: The pretax margin has fluctuated over the years, with a notable decrease from 26.39% in 2019 to 22.84% in 2023. This indicates a variation in the company's ability to generate profits before accounting for taxes.
4. Net Profit Margin: The net profit margin has shown a mixed performance, with fluctuations over the years. It decreased from 25.46% in 2019 to 20.07% in 2022 but increased again to 24.54% in 2023. This shows the company's ability to generate profits after accounting for all expenses and taxes.
Overall, Garmin Ltd's profitability ratios reflect some challenges in maintaining consistent profitability over the years. Further analysis of the company's financial statements and operations may be needed to understand the factors contributing to these changes in profitability ratios.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.69% | 13.29% | 15.52% | 14.99% | 15.33% |
| Return on assets (ROA) | 14.99% | 12.59% | 13.78% | 14.11% | 15.45% |
| Return on total capital | 15.58% | 16.57% | 19.93% | 19.11% | 19.73% |
| Return on equity (ROE) | 18.39% | 15.69% | 17.70% | 17.99% | 19.87% |
Garmin Ltd's profitability ratios have shown some fluctuations over the past five years. The Operating return on assets (Operating ROA) ranged from 12.69% to 15.52%, with a peak in 2021. This indicates the company's ability to generate operating income relative to its total assets, with a general trend of strong performance.
The Return on assets (ROA) fluctuated between 12.59% and 15.45% over the period, peaking in 2019. This measure considers net income relative to total assets, showing how efficiently the company is utilizing its assets to generate profits.
The Return on total capital ranged from 15.58% to 19.93%, with a peak in 2021. This ratio reflects the company's ability to generate returns for both debt and equity holders combined, indicating Garmin's overall profitability and efficiency in utilizing its capital resources.
The Return on equity (ROE) varied between 15.69% and 19.87% over the period, with a peak in 2019. This metric shows the company's ability to generate profits from shareholders' equity, highlighting the return on their investments in the company.
Overall, Garmin Ltd has demonstrated a generally strong performance in terms of profitability ratios, with fluctuations that may be influenced by various factors such as economic conditions, industry trends, and company-specific strategies.