Garmin Ltd (GRMN)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 9,630,530 | 8,603,570 | 7,731,170 | 7,854,430 | 7,031,370 |
| Operating ROA | 16.55% | 12.69% | 13.29% | 15.52% | 14.99% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,593,990K ÷ $9,630,530K
= 16.55%
The operating return on assets (Operating ROA) for Garmin Ltd has shown some fluctuations over the last five years. In December 2020, the company's Operating ROA was 14.99%, which increased slightly to 15.52% by December 2021. However, there was a decline in the Operating ROA to 13.29% by December 2022 and further to 12.69% by December 2023.
It is worth noting that the Operating ROA rebounded significantly by December 2024, reaching 16.55%. This improvement in Operating ROA indicates that Garmin Ltd was able to generate higher operating profits relative to its total assets in 2024 compared to the previous years.
Overall, the trend in Garmin Ltd's Operating ROA suggests that the company's ability to generate profits from its operations in relation to its total assets has experienced some volatility but ended on a positive note with a notable increase in 2024. Further analysis would be required to understand the factors driving these fluctuations and the sustainability of the improved performance in 2024.
Peer comparison
Dec 31, 2024