Garmin Ltd (GRMN)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,593,990 | 1,092,160 | 1,027,840 | 1,218,620 | 1,054,240 |
| Revenue | US$ in thousands | 6,281,210 | 5,254,470 | 4,851,100 | 4,937,230 | 4,191,200 |
| Operating profit margin | 25.38% | 20.79% | 21.19% | 24.68% | 25.15% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,593,990K ÷ $6,281,210K
= 25.38%
The operating profit margin for Garmin Ltd has shown some fluctuations over the years, as follows:
- As of December 31, 2020, the operating profit margin was 25.15%, reflecting a strong profitability level.
- By December 31, 2021, the operating profit margin slightly decreased to 24.68%, still indicating a robust performance.
- However, there was a more significant decline in the operating profit margin by December 31, 2022, to 21.19%, suggesting potential challenges in maintaining profitability.
- This downward trend continued into December 31, 2023, with the operating profit margin decreasing further to 20.79%, raising concerns about the company's ability to generate profits from its operations.
- The most recent data point as of December 31, 2024, shows an improvement in the operating profit margin to 25.38%, which may indicate a positive turnaround in profitability.
Overall, while there have been fluctuations in Garmin Ltd's operating profit margin over the years, the company managed to recover and improve its profitability by the end of 2024. It is essential for investors and stakeholders to monitor this metric closely to assess the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2024