Garmin Ltd (GRMN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,603,570 | 7,731,170 | 7,854,430 | 7,031,370 | 6,166,800 |
| Total stockholders’ equity | US$ in thousands | 7,012,060 | 6,204,340 | 6,114,160 | 5,516,120 | 4,793,500 |
| Financial leverage ratio | 1.23 | 1.25 | 1.28 | 1.27 | 1.29 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,603,570K ÷ $7,012,060K
= 1.23
The financial leverage ratio of Garmin Ltd has been fluctuating over the past five years. In 2023, the financial leverage ratio was 1.23, slightly lower than the previous year's ratio of 1.25. This indicates that the company is relying less on debt to finance its operations compared to the prior year.
Looking back, the financial leverage ratio was 1.28 in 2021, 1.27 in 2020, and 1.29 in 2019. These figures show a gradual decrease in leverage from 2019 to 2023, suggesting that Garmin Ltd has been reducing its dependency on debt over time.
Overall, the downward trend in the financial leverage ratio implies that Garmin Ltd has been managing its financial structure by decreasing its debt levels or increasing its equity, potentially reducing the company's financial risk and improving its financial stability.
Peer comparison
Dec 31, 2023