Garmin Ltd (GRMN)
Operating profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,593,993 | 1,418,366 | 1,251,260 | 1,193,588 | 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 |
| Revenue (ttm) | US$ in thousands | 6,281,160 | 5,991,650 | 5,653,490 | 5,483,240 | 5,254,540 | 5,104,140 | 4,948,720 | 4,835,520 | 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 |
| Operating profit margin | 25.38% | 23.67% | 22.13% | 21.77% | 20.79% | 19.96% | 19.96% | 20.60% | 21.19% | 22.00% | 22.57% | 23.67% | 24.61% | 25.95% | 26.97% | 25.60% | 25.23% | 24.42% | 24.24% | 25.41% |
December 31, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $1,593,993K ÷ $6,281,160K
= 25.38%
Garmin Ltd's operating profit margin has witnessed fluctuations over the past few years, ranging from a high of 26.97% in June 2021 to a low of 19.96% in both March and September 2023. The operating profit margin measures the company's efficiency in generating profits from its core operations before interest and taxes.
Overall, there seems to be a declining trend in Garmin's operating profit margin from the peak in June 2021. This decline may indicate challenges in controlling costs, maintaining pricing power, or increasing competition in the industry. However, it is important to note that there have been periods of recovery and improvement in the operating profit margin, such as the increase from December 2023 to December 2024.
Analyzing the operating profit margin trend can provide insights into the company's operational efficiency and profitability. Further examination of the underlying factors contributing to the changes in the operating profit margin would be necessary to better understand Garmin Ltd's financial performance and prospects for the future.
Peer comparison
Dec 31, 2024