Garmin Ltd (GRMN)

Financial leverage ratio

		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
Total assets	US$ in thousands	8,603,570	7,965,020	7,871,800	7,726,030	7,731,170	7,627,610	7,813,700	7,703,250	7,854,430	7,571,490	7,402,720	6,999,730	7,031,370	6,550,670	6,220,040	6,053,990	6,166,800	5,755,100	5,524,780	5,280,140
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
Financial leverage ratio		1.23	1.25	1.29	1.21	1.25	1.30	1.33	1.23	1.28	1.29	1.33	1.22	1.27	1.28	1.31	1.23	1.29	1.31	1.33	1.22

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 varied over the past 20 quarters, ranging from 1.21 to 1.33. This ratio indicates the extent to which the company relies on debt to finance its operations and investments compared to equity.

A financial leverage ratio above 1 suggests that the company relies more on debt financing, while a ratio below 1 indicates a greater reliance on equity financing. Garmin Ltd's financial leverage ratio has generally been above 1, indicating a preference for debt financing in its capital structure.

The fluctuations in the financial leverage ratio may be due to various factors such as changes in the company's capital structure, strategic decisions regarding debt levels, or economic conditions impacting borrowing costs. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's risk exposure and financial stability.