Garmin Ltd (GRMN)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,200,360 | 1,064,970 | 1,206,800 | 1,103,410 | 987,222 |
| Revenue | US$ in thousands | 5,254,470 | 4,851,100 | 4,937,230 | 4,191,200 | 3,740,940 |
| Pretax margin | 22.84% | 21.95% | 24.44% | 26.33% | 26.39% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,200,360K ÷ $5,254,470K
= 22.84%
The pretax margin of Garmin Ltd has exhibited some fluctuations over the past five years. In 2023, the pretax margin improved to 22.84% from 21.95% in 2022. This suggests that the company was able to generate a higher proportion of profits before accounting for taxes compared to the previous year. However, the pretax margin in 2023 was lower than the levels recorded in 2021, 2020, and 2019, indicating a slight decline in profitability efficiency compared to those years.
Overall, Garmin Ltd's pretax margin performance demonstrates some variability, with the company achieving relatively high levels of profitability in the earlier years (2020 and 2019) compared to the more recent years. Further analysis of the company's financial and operational strategies may be necessary to understand the factors driving these fluctuations in pretax margin over time.
Peer comparison
Dec 31, 2023