Garmin Ltd (GRMN)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,630,530 | 8,603,570 | 7,731,170 | 7,854,430 | 7,031,370 |
| Total stockholders’ equity | US$ in thousands | 7,848,400 | 7,012,060 | 6,204,340 | 6,114,160 | 5,516,120 |
| Financial leverage ratio | 1.23 | 1.23 | 1.25 | 1.28 | 1.27 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,630,530K ÷ $7,848,400K
= 1.23
The financial leverage ratio of Garmin Ltd has shown a slight fluctuation over the years, starting at 1.27 in December 31, 2020, and increasing marginally to 1.28 by December 31, 2021. However, there was a subsequent decrease in the ratio to 1.25 by December 31, 2022, followed by a further decline to 1.23 by both December 31, 2023, and December 31, 2024. This indicates that the company's reliance on debt to finance its operations has slightly decreased over the years, which could be seen as a positive trend in terms of financial stability and risk management.
Peer comparison
Dec 31, 2024