Garmin Ltd (GRMN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Garmin Ltd's solvency ratios, specifically the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio, have consistently remained at 0.00 over the analyzed periods. This indicates that the company has not utilized any debt in its capital structure during these periods.
However, the financial leverage ratio has fluctuated over time, ranging from 1.21 to 1.33. The financial leverage ratio measures the proportion of a company's assets that are financed with debt. A higher financial leverage ratio indicates higher financial risk and leverage in the company's capital structure.
Overall, based on the solvency ratios provided, Garmin Ltd appears to have a conservative capital structure with low levels of debt utilization, which may indicate strong financial stability and ability to meet its financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | — | — | 1,253.17 | 25.18 | 32.09 | 37.37 | 42.06 | 42.65 | 45.03 | 44.85 | 34.52 | 28.49 | 22.15 | 18.89 | 19.00 | 17.90 | 16.34 | 15.48 | 15.56 |
The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest payments.
Based on the data provided for Garmin Ltd over the past few quarters, the interest coverage ratio has shown significant fluctuations. In the most recent quarter (March 31, 2023), the interest coverage ratio was very high at 1,253.17, indicating a strong ability to cover interest expenses with operating income. This substantial increase from the previous quarter suggests an improved financial position and operational efficiency.
Looking at the trend over the past several quarters, Garmin Ltd has generally maintained a healthy interest coverage ratio, with values consistently above 15. This indicates that the company has consistently been able to comfortably cover its interest expenses with its operating income.
It is important to note that the significant fluctuations in the interest coverage ratio may be driven by changes in operating income, interest expenses, or a combination of both. Investors and analysts should continue to monitor Garmin Ltd's financial performance to assess its ability to service its debt obligations in the long term.