Garmin Ltd (GRMN)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 58.85% | 58.09% | 57.62% | 57.53% | 57.19% | 56.54% | 57.14% | 57.84% | 57.86% | 57.94% | 57.68% | 57.56% | 58.37% | 59.23% | 59.36% | 59.45% | 59.38% | 59.29% | 59.79% | 59.87% |
| Operating profit margin | 25.38% | 23.67% | 22.13% | 21.77% | 20.79% | 19.96% | 19.96% | 20.60% | 21.19% | 22.00% | 22.57% | 23.67% | 24.61% | 25.95% | 26.97% | 25.60% | 25.23% | 24.42% | 24.24% | 25.41% |
| Pretax margin | 26.99% | 28.93% | 27.01% | 26.93% | 26.10% | 22.48% | 21.98% | 21.73% | 21.96% | 21.03% | 21.86% | 23.26% | 24.06% | 26.25% | 27.83% | 26.75% | 26.43% | 25.46% | 24.71% | 26.12% |
| Net profit margin | 22.47% | 25.33% | 24.34% | 24.86% | 24.54% | 20.39% | 20.09% | 19.94% | 20.07% | 19.76% | 20.47% | 21.23% | 21.85% | 23.00% | 24.39% | 23.89% | 23.75% | 25.95% | 25.05% | 25.46% |
Garmin Ltd's profitability ratios have fluctuated over the data period.
1. Gross Profit Margin: Garmin has maintained a relatively stable gross profit margin, hovering around the high 50% range, indicating efficient production and pricing strategies.
2. Operating Profit Margin: The operating profit margin shows some volatility, with a decreasing trend in recent periods. This may signify challenges in controlling operating expenses relative to sales.
3. Pretax Margin: The pretax margin also displays variability, with a declining trend in the middle of the data series followed by an improvement towards the end. This suggests fluctuations in pre-tax profitability over time.
4. Net Profit Margin: The net profit margin reflects the profitability of the firm after all expenses, including taxes. While also showing fluctuations, the net profit margin has generally decreased over the period, indicating decreasing profitability relative to sales.
Overall, Garmin Ltd's profitability ratios highlight the company's ability to generate profits from its operations, albeit with some fluctuations and a slight decline in margins in recent periods. Further analysis of the underlying factors driving these changes would provide more insights into the company's financial performance.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 14.66% | 16.24% | 15.49% | 15.79% | 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% |
| Return on total capital | 20.31% | 18.90% | 17.86% | 16.47% | 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% |
| Return on equity (ROE) | 17.98% | 20.22% | 19.64% | 18.81% | 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% |
Garmin Ltd's profitability ratios show a mixed performance over the reported periods.
1. Operating Return on Assets (Operating ROA) ranged from a high of 17.69% in June 2021 to a low of 12.55% in June 2023. This ratio measures how well the company generates operating profit from its assets.
2. Return on Assets (ROA) fluctuated between 16.08% in March 2020 and 12.48% in March 2023. ROA indicates the company's ability to generate profit from its total assets.
3. Return on Total Capital varied from 23.44% in June 2021 to 15.55% in March 2023. This ratio evaluates the return generated from all capital invested in the company.
4. Return on Equity (ROE) ranged from 21.20% in June 2021 to 15.06% in March 2023. ROE reflects how well the company utilizes shareholders' equity to generate profit.
Overall, Garmin Ltd maintained a relatively strong performance in profitability ratios, despite fluctuations over time. The company's ability to generate returns from assets and capital remained satisfactory, with some variation in profitability levels across the periods analyzed.