Garmin Ltd (GRMN)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	3,696,560	3,004,960	2,806,780	2,890,460	2,481,340
Revenue	US$ in thousands	6,281,210	5,254,470	4,851,100	4,937,230	4,191,200
Gross profit margin		58.85%	57.19%	57.86%	58.54%	59.20%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $3,696,560K ÷ $6,281,210K
= 58.85%

Based on the data provided, Garmin Ltd's gross profit margin has shown some fluctuations over the past five years.

Initially, in December 31, 2020, the gross profit margin was at 59.20%, indicating that the company was able to generate 59.20% of its revenue as gross profit after deducting the cost of goods sold.

However, the gross profit margin decreased slightly to 58.54% by December 31, 2021, and continued to decline in the subsequent years to 57.86% in 2022 and 57.19% in 2023. This downward trend suggests that Garmin Ltd may have faced challenges in controlling its cost of goods sold relative to its revenue during those years.

Nevertheless, by December 31, 2024, the gross profit margin improved to 58.85%, reflecting a positive turnaround and potentially a more efficient cost management approach in that year.

In conclusion, while Garmin Ltd experienced fluctuations in its gross profit margin over the years, the recent increase in the margin in 2024 indicates a potential improvement in the company's profitability and cost management strategies.