Garmin Ltd (GRMN)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	1,289,640	973,585	1,082,200	992,324	952,486
Revenue	US$ in thousands	5,254,470	4,851,100	4,937,230	4,191,200	3,740,940
Net profit margin		24.54%	20.07%	21.92%	23.68%	25.46%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $1,289,640K ÷ $5,254,470K
= 24.54%

Looking at Garmin Ltd's net profit margin over the past five years, we observe fluctuations in the company's ability to convert revenue into profit. The net profit margin was at its highest in 2019 at 25.46% before experiencing a slight decrease in the following years. In 2020, the net profit margin was 23.68%, followed by a further decrease to 21.92% in 2021. However, there was a notable improvement in 2022 when the net profit margin increased to 20.07%. The most recent data for 2023 shows a significant rise in the net profit margin to 24.54%, indicating a rebound in profitability.

Overall, Garmin Ltd's net profit margin has shown some variability in recent years, but the company has managed to maintain relatively healthy profitability levels. The upward trend observed in 2023 suggests that the company may have implemented strategies to enhance efficiency and cost management, resulting in improved profitability. Monitoring this ratio over time can provide valuable insights into the company's operational performance and financial health.