Garmin Ltd (GRMN)
Operating profit margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,092,160 | 1,018,880 | 987,884 | 996,269 | 1,027,843 | 1,075,788 | 1,119,085 | 1,197,517 | 1,218,620 | 1,274,768 | 1,309,199 | 1,126,416 | 1,054,239 | 959,495 | 903,854 | 971,686 | 945,587 | 891,737 | 826,236 | 787,523 |
| Revenue (ttm) | US$ in thousands | 5,246,720 | 5,096,320 | 4,940,900 | 4,827,700 | 4,850,560 | 4,890,830 | 4,957,220 | 5,058,410 | 4,952,040 | 4,911,850 | 4,854,200 | 4,399,994 | 4,178,615 | 3,929,445 | 3,728,516 | 3,823,804 | 3,748,274 | 3,578,152 | 3,462,914 | 3,399,351 |
| Operating profit margin | 20.82% | 19.99% | 19.99% | 20.64% | 21.19% | 22.00% | 22.57% | 23.67% | 24.61% | 25.95% | 26.97% | 25.60% | 25.23% | 24.42% | 24.24% | 25.41% | 25.23% | 24.92% | 23.86% | 23.17% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $1,092,160K ÷ $5,246,720K
= 20.82%
The operating profit margin of Garmin Ltd has exhibited some fluctuations over the past few quarters. The company's operating profit margin ranged from a low of 19.99% to a high of 26.97% during the period under review. Despite some variability, the operating profit margin has generally remained above 20% over the past few years, indicating a consistent level of profitability in relation to its operating revenue.
It is worth noting that there was a slight decline in the operating profit margin in the most recent quarter, dropping to 20.82% from the previous quarter's 21.19%. This decrease may merit further investigation to understand the underlying reasons for the margin compression and whether it is a one-time event or a trend to monitor in the future.
Overall, Garmin Ltd has maintained a relatively healthy operating profit margin, which signifies its ability to control costs and generate profits from its core business operations. Tracking and analyzing the company's operating profit margin over time can provide valuable insights into its operational efficiency and profitability trends.
Peer comparison
Dec 31, 2023