Garmin Ltd (GRMN)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	1,289,640	973,585	1,082,200	992,324	952,486
Total stockholders’ equity	US$ in thousands	7,012,060	6,204,340	6,114,160	5,516,120	4,793,500
ROE		18.39%	15.69%	17.70%	17.99%	19.87%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,289,640K ÷ $7,012,060K
= 18.39%

Over the past five years, Garmin Ltd has demonstrated a relatively stable Return on Equity (ROE) performance, ranging from 15.69% to 19.87%. The company's ROE increased from 15.69% in 2022 to 18.39% in 2023, indicating an improvement in how efficiently the company is generating profits from shareholders' equity.

Even though the ROE has fluctuated slightly year over year, Garmin has generally maintained a healthy ROE above 15%, which suggests effective utilization of shareholders' funds to generate earnings.

However, compared to the peak ROE of 19.87% in 2019, there has been a slight decline in recent years, which could indicate either increased equity investment or a decline in profitability relative to the shareholder's equity.

In conclusion, Garmin Ltd has maintained a consistent ROE performance, demonstrating efficient use of shareholders' equity to generate profits, but it may need to focus on sustaining or improving its profitability levels to enhance ROE in the future.