Garmin Ltd (GRMN)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	1,092,160	1,027,840	1,218,620	1,054,240	945,586
Revenue	US$ in thousands	5,254,470	4,851,100	4,937,230	4,191,200	3,740,940
Operating profit margin		20.79%	21.19%	24.68%	25.15%	25.28%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $1,092,160K ÷ $5,254,470K
= 20.79%

Garmin Ltd's operating profit margin has shown a declining trend over the past five years, decreasing from 25.28% in 2019 to 20.79% in 2023. This indicates that the company's profitability from its core operations has slightly weakened over this period. The decreasing trend may be a cause for concern as it suggests that Garmin Ltd's ability to generate profits from its day-to-day business activities has been under pressure. Further analysis would be required to determine the reasons behind this decline and to assess the potential implications for the company's financial performance and future prospects.