Garmin Ltd (GRMN)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 8,603,570 | 7,965,020 | 7,871,800 | 7,726,030 | 7,731,170 | 7,627,610 | 7,813,700 | 7,703,250 | 7,854,430 | 7,571,490 | 7,402,720 | 6,999,730 | 7,031,370 | 6,550,670 | 6,220,040 | 6,053,990 | 6,166,800 | 5,755,100 | 5,524,780 | 5,280,140 |
| Operating ROA | 12.69% | 12.79% | 12.55% | 12.89% | 13.29% | 14.10% | 14.32% | 15.55% | 15.52% | 16.84% | 17.69% | 16.09% | 14.99% | 14.65% | 14.53% | 16.05% | 15.33% | 15.49% | 14.96% | 14.91% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,092,160K ÷ $8,603,570K
= 12.69%
Operating return on assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profits from its operational assets. For Garmin Ltd, the Operating ROA has been fluctuating over the past few quarters, ranging from 12.55% to 17.69%.
The trend in Garmin's Operating ROA shows a general decline from 17.69% in the third quarter of 2021 to 12.69% in the fourth quarter of 2023. However, it is important to note that even though there have been fluctuations, the ratio has generally remained above 12%, which indicates that Garmin has been effective in generating profits from its operational assets.
The decrease in Operating ROA over time could be due to several factors, such as changes in operating income, changes in total assets, or changes in the efficiency of asset utilization. Investors and analysts should further investigate the reasons behind these fluctuations to gain a deeper understanding of Garmin's financial performance and operational efficiency.
Peer comparison
Dec 31, 2023