Garmin Ltd (GRMN)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 1.27 | 1.19 | 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 |
Based on the data provided, Garmin Ltd's solvency ratios indicate a strong financial position with low levels of debt relative to its assets, capital, and equity.
The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all remain consistently at 0.00 throughout the time period, indicating that the company does not rely heavily on debt to finance its operations.
The Financial leverage ratio, which measures the proportion of debt in the company's capital structure, has declined from 1.23 in March 2020 to 1.23 in December 2024. This decline indicates that Garmin Ltd has been effectively managing its debt levels and optimizing its capital structure over the years.
Overall, the solvency ratios suggest that Garmin Ltd is in a healthy financial position with a conservative approach to debt, which enhances its long-term stability and ability to weather economic challenges.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | — | — | — | 33.63 | 21.78 | 17.25 | 15.15 | 25.18 | 32.09 | 37.37 | 42.06 | 42.65 | 45.03 | 44.85 | 34.52 | 28.49 | 22.15 | 18.89 | 19.00 |
The interest coverage ratio of Garmin Ltd has displayed a fluctuating trend over the reported periods. The ratio indicates the company's ability to meet its interest obligations with its operating income.
From March 31, 2020, to June 30, 2022, the interest coverage ratio showed a consistent increase, reflecting a strengthening capacity to cover interest expenses. This upward trend peaked at 45.03 as of September 30, 2021, indicating robust financial health during this period.
However, from December 31, 2021, to March 31, 2023, the interest coverage ratio declined steadily. This downward trend may suggest a potential vulnerability in covering interest costs from earnings during this period.
As of December 31, 2023, the interest coverage ratio improved to 33.63, showcasing a recovery from the previous declining trend.
Notably, there is missing data for the periods from March 31, 2024, onwards, which limits the ability to assess the recent performance of Garmin Ltd in terms of its ability to cover interest expenses.
Overall, the fluctuating nature of Garmin Ltd's interest coverage ratio implies variability in its ability to manage interest obligations using its operating income, indicating the need for continued monitoring of the company's financial performance.