Garmin Ltd (GRMN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.23 | 1.23 | 1.25 | 1.28 | 1.27 |
The solvency ratios of Garmin Ltd indicate a strong financial position with consistently low debt levels over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all stand at 0.00 for the years from 2020 to 2024, indicating that the company has no debt relative to its assets, capital, or equity. This suggests that Garmin Ltd relies more on equity financing rather than debt to fund its operations and investments.
Additionally, the Financial leverage ratio shows a decreasing trend from 1.27 in 2020 to 1.23 in 2024. A decreasing trend in this ratio indicates that the company is relying less on debt to finance its operations and investments, which is a positive sign for solvency. Overall, Garmin Ltd's solvency ratios reflect a strong financial position and a conservative approach to debt management.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 25.18 | 21.35 | 20.28 |
The interest coverage ratio for Garmin Ltd has shown a positive trend over the past few years, indicating the company's ability to meet its interest obligations comfortably. In December 2020, the interest coverage ratio stood at 20.28, which increased to 21.35 by the end of 2021 and further improved to 25.18 by the end of 2022. This upward trend suggests that Garmin's earnings before interest and taxes are more than sufficient to cover its interest expenses, reflecting a strong financial position. However, it is worth noting that the data for December 2023 and December 2024 are not available (indicated by "—"), which limits a complete assessment of the company's interest coverage in those years. Overall, the improving trend in the interest coverage ratio indicates a healthy financial position for Garmin Ltd.