Garmin Ltd (GRMN)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	9,630,530	9,347,730	8,883,320	8,633,880	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
Operating ROA		16.55%	15.17%	14.09%	13.82%	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%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,593,993K ÷ $9,630,530K
= 16.55%

Operating return on assets (operating ROA) is a key financial ratio that measures a company's efficiency in generating profits from its assets used in its core operations. For Garmin Ltd, the operating ROA has fluctuated over the years based on the provided data.

As of December 31, 2024, Garmin Ltd's operating ROA stood at 16.55%, showing an improvement compared to the previous periods. This indicates that the company generated $0.1655 in operating income for every dollar of assets employed in its operations.

It is worth noting that the operating ROA has shown some variability throughout the years, with the ratio ranging from a low of 12.55% on June 30, 2023, to a high of 17.69% on June 30, 2021.

Overall, a higher operating ROA suggests better operational efficiency and profitability, as the company is able to generate more income from its assets. Investors and analysts often use this ratio to assess the company's management effectiveness in utilizing its assets to generate profits.