Garmin Ltd (GRMN)

Return on total capital

		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 interest and tax (EBIT) (ttm)	US$ in thousands	1,092,160	1,018,880	987,884	996,269	1,027,843	1,075,789	1,119,086	1,197,518	1,218,621	1,274,768	1,309,199	1,126,416	1,054,239	959,495	903,854	971,686	945,587	891,737	826,236	787,523
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	7,012,060	6,349,280	6,123,820	6,405,000	6,204,340	5,878,190	5,865,930	6,248,840	6,114,160	5,854,740	5,584,250	5,715,830	5,516,120	5,104,340	4,740,860	4,934,400	4,793,500	4,380,890	4,150,970	4,315,290
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%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,092,160K ÷ ($—K + $7,012,060K)
= 15.58%

Garmin Ltd's return on total capital has displayed a relatively stable performance over the specified periods, with values ranging from 15.55% to 23.44%. The trend indicates a slight decline from higher levels seen in early 2021 to the more recent values around 15-16%. Despite this decline, the company has maintained a solid performance in generating returns on its total capital base. It is notable that in mid-2021, there was a significant spike in return on total capital, reaching a peak of 23.44%, suggesting a period of strong efficiency in capital utilization. Overall, the consistent positive values of the return on total capital signify Garmin Ltd's ability to effectively deploy its capital resources to generate returns for its stakeholders.