Garmin Ltd (GRMN)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 57.27% | 56.62% | 57.23% | 57.94% | 57.86% | 57.94% | 57.68% | 57.56% | 58.37% | 59.23% | 59.36% | 59.45% | 59.38% | 59.29% | 59.79% | 59.87% | 59.60% | 59.91% | 59.40% | 58.98% |
| Operating profit margin | 20.82% | 19.99% | 19.99% | 20.64% | 21.19% | 22.00% | 22.57% | 23.67% | 24.61% | 25.95% | 26.97% | 25.60% | 25.23% | 24.42% | 24.24% | 25.41% | 25.23% | 24.92% | 23.86% | 23.17% |
| 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% |
| Net profit margin | 24.58% | 20.42% | 20.13% | 19.97% | 20.07% | 19.76% | 20.47% | 21.23% | 21.85% | 23.00% | 24.39% | 23.89% | 23.75% | 25.95% | 25.05% | 25.46% | 25.41% | 21.85% | 21.32% | 20.74% |
Garmin Ltd's profitability ratios have exhibited some fluctuations over the periods provided. The gross profit margin, which indicates the company's ability to generate a profit from its core operations, has shown a relatively stable trend around the mid to high 50% range, with some minor fluctuations.
The operating profit margin, representing the company's profitability after accounting for operating expenses, appears to have shown more variability, ranging from around 19% to 26%. This indicates fluctuations in the efficiency of the company's operations in generating profits.
The pretax margin, reflecting the company's profitability before accounting for taxes, has also shown some variability, ranging from around 21% to 28%. This could be influenced by factors such as changes in revenue, expenses, or other income.
The net profit margin, which represents the company's bottom-line profitability after all expenses have been deducted, has shown a similar trend to the pretax margin, reflecting fluctuations between around 20% to 26%. This ratio indicates the company's overall ability to control costs and generate profits.
Overall, while Garmin Ltd has been able to maintain solid profitability margins over the periods provided, the fluctuations observed in these ratios suggest some variability in the company's financial performance and efficiency in managing costs and generating profit. Further analysis of the underlying factors driving these fluctuations would be necessary to gain a deeper understanding of the company's profitability dynamics.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 14.99% | 13.07% | 12.63% | 12.48% | 12.59% | 12.67% | 12.99% | 13.94% | 13.78% | 14.92% | 15.99% | 15.02% | 14.11% | 15.56% | 15.02% | 16.08% | 15.45% | 13.59% | 13.36% | 13.35% |
| Return on total capital | 15.58% | 16.05% | 16.13% | 15.55% | 16.57% | 18.30% | 19.08% | 19.16% | 19.93% | 21.77% | 23.44% | 19.71% | 19.11% | 18.80% | 19.07% | 19.69% | 19.73% | 20.36% | 19.90% | 18.25% |
| Return on equity (ROE) | 18.39% | 16.39% | 16.24% | 15.06% | 15.69% | 16.44% | 17.30% | 17.18% | 17.70% | 19.29% | 21.20% | 18.39% | 17.99% | 19.97% | 19.70% | 19.73% | 19.87% | 17.85% | 17.78% | 16.33% |
Based on the profitability ratios provided for Garmin Ltd over multiple quarters, the company's performance in terms of generating returns for its stakeholders can be analyzed as follows:
1. Operating Return on Assets (Operating ROA): The Operating ROA fluctuated between approximately 12.55% and 17.69% over the periods analyzed, with a decreasing trend from 2021 to 2023. This ratio indicates that for every dollar of assets, the company generated profits ranging from 12.55% to 17.69% before interest and taxes.
2. Return on Assets (ROA): The ROA varied between 12.48% and 16.08% during the periods reviewed, showcasing a relatively stable performance with slight fluctuations. The ROA measures the overall efficiency of utilizing assets to generate profits, reflecting how well the company is utilizing its assets to generate earnings.
3. Return on Total Capital: The Return on Total Capital ranged from 15.55% to 23.44% over the quarters evaluated, displaying a generally increasing trend from 2020 to 2023. This ratio indicates how effectively the company is generating profits from its total invested capital, including both equity and debt.
4. Return on Equity (ROE): The ROE fluctuated between 15.06% and 21.20% across the quarters analyzed, showing a mild variation in returns to equity shareholders. The ROE measures the return generated on shareholders' equity, signifying the company's ability to generate profits from the equity invested by shareholders.
Overall, Garmin Ltd has maintained relatively solid performance in terms of profitability ratios, with some fluctuations seen in the Operating ROA and ROE. The Return on Total Capital has shown an upward trend, indicating the company's efficient use of total capital to generate returns. Further analysis and comparison with industry benchmarks can provide a more comprehensive insight into Garmin Ltd's profitability performance.