Garmin Ltd (GRMN)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 1,371,562 | 1,147,195 | 1,087,891 | 1,050,881 | 1,064,973 | 1,028,401 | 1,083,520 | 1,176,613 | 1,191,263 | 1,289,424 | 1,350,755 | 1,177,184 | 1,104,305 | 1,000,253 | 921,303 | 998,593 | 987,223 | 931,682 | 875,242 | 835,532 |
| Revenue (ttm) | US$ in thousands | 5,246,720 | 5,096,320 | 4,940,900 | 4,827,700 | 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 | 3,748,274 | 3,578,152 | 3,462,914 | 3,399,351 |
| Pretax margin | 26.14% | 22.51% | 22.02% | 21.77% | 21.96% | 21.03% | 21.86% | 23.26% | 24.06% | 26.25% | 27.83% | 26.75% | 26.43% | 25.46% | 24.71% | 26.12% | 26.34% | 26.04% | 25.27% | 24.58% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,371,562K ÷ $5,246,720K
= 26.14%
The pretax margin of Garmin Ltd has displayed fluctuations over the past few quarters. The pretax margin represents the percentage of each dollar of revenue that the company retains as pre-tax profit after accounting for all expenses.
In the most recent quarter, the pretax margin was 26.14%, showing a slight increase from the previous quarter. This suggests that Garmin Ltd was able to maintain a relatively high level of profitability relative to its revenues.
Looking back over the previous quarters, there were fluctuations in the pretax margin, with some quarters showing higher margins (such as in Sep 2021 at 27.83%) and some lower margins (such as in Jun 2020 at 24.71%).
Overall, the pretax margin trend seems to be relatively stable and above 20% in most quarters, indicating that Garmin Ltd has been able to effectively manage its costs and generate profit before taxes. However, it is important for the company to consistently monitor and control its expenses to sustain and potentially improve this key profitability metric in the future.
Peer comparison
Dec 31, 2023