Garmin Ltd (GRMN)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	1,092,160	1,027,840	1,218,620	1,054,240	945,586
Interest expense	US$ in thousands	—	40,826	57,087	51,995	24,837
Interest coverage		—	25.18	21.35	20.28	38.07

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,092,160K ÷ $—K
= —

Garmin Ltd's interest coverage ratio has shown a fluctuating trend over the five-year period from 2019 to 2023. The interest coverage ratio measures the company's ability to meet its interest payments on debt obligations.

In 2019, Garmin's interest coverage ratio was the highest at 38.07, indicating a strong ability to cover its interest expenses with operating income. However, in the subsequent years, the ratio decreased but remained relatively healthy, with values of 20.28 in 2020, 21.35 in 2021, and 25.18 in 2022.

It's noteworthy that there is a missing value for interest coverage in 2023. However, based on the trend observed in the previous years, Garmin's interest coverage ratio has generally been at levels that suggest a comfortable ability to meet its interest obligations.

Overall, Garmin Ltd's interest coverage ratio indicates that the company has been effectively managing its interest payments in relation to its operating income, providing a positive indication of its financial health and stability in addressing debt obligations.