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Garmin (Garmin) ROE %

: 32.46% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Garmin's annualized net income for the quarter that ended in Dec. 2023 was $2,169 Mil. Garmin's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $6,681 Mil. Therefore, Garmin's annualized ROE % for the quarter that ended in Dec. 2023 was 32.46%.

The historical rank and industry rank for Garmin's ROE % or its related term are showing as below:

GRMN' s ROE % Range Over the Past 10 Years
Min: 10.31   Med: 17.97   Max: 21.27
Current: 20.09

During the past 13 years, Garmin's highest ROE % was 21.27%. The lowest was 10.31%. And the median was 17.97%.

GRMN's ROE % is ranked better than
90.87% of 2409 companies
in the Hardware industry
Industry Median: 4.72 vs GRMN: 20.09

Garmin ROE % Historical Data

The historical data trend for Garmin's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Garmin Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.27 19.25 18.61 15.81 19.52

Garmin Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.42 12.84 18.39 16.50 32.46

Competitive Comparison

For the Scientific & Technical Instruments subindustry, Garmin's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Garmin ROE % Distribution

For the Hardware industry and Technology sector, Garmin's ROE % distribution charts can be found below:

* The bar in red indicates where Garmin's ROE % falls into.



Garmin ROE % Calculation

Garmin's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=1289.636/( (6204.34+7012.06)/ 2 )
=1289.636/6608.2
=19.52 %

Garmin's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=2168.508/( (6349.28+7012.06)/ 2 )
=2168.508/6680.67
=32.46 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Garmin  (NYSE:GRMN) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=2168.508/6680.67
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(2168.508 / 5930.004)*(5930.004 / 8284.2955)*(8284.2955 / 6680.67)
=Net Margin %*Asset Turnover*Equity Multiplier
=36.57 %*0.7158*1.24
=ROA %*Equity Multiplier
=26.18 %*1.24
=32.46 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=2168.508/6680.67
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (2168.508 / 1532.148) * (1532.148 / 1361.816) * (1361.816 / 5930.004) * (5930.004 / 8284.2955) * (8284.2955 / 6680.67)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.4153 * 1.1251 * 22.96 % * 0.7158 * 1.24
=32.46 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Garmin ROE % Related Terms

Thank you for viewing the detailed overview of Garmin's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Garmin (Garmin) Business Description

Traded in Other Exchanges
Address
Muhlentalstrasse 2, Schaffhausen, CHE, 8200
Garmin produces GPS-enabled hardware and software for five verticals: fitness, outdoors, auto, aviation, and marine. The company relies on licensing mapping data to enable its hardware specialized for often niche activities like scuba diving or sailing. Garmin operates in 100 countries and sells its products via distributors as well as relationships with original equipment manufacturers.
Executives
Clifton A Pemble director, officer: President and CEO
Cheng-wei Wang officer: General Manager - Garmin Corp. NO. 68, ZHANGSHU 2ND ROAD, XIZHI DISTRICT, NEW TAIPEI CITY F5 221
Sean Biddlecombe officer: General Manager, Garmin Europe LIBERTY HOUSE, HOUNSDOWN BUSINESS PARK, SOUTHAMPTON X0 SO40 9LR
Douglas G. Boessen officer: CFO and Treasurer 3231 S.E. SIXTH AVENUE, TOPEKA KS 66607
Patrick Desbois officer: Vice President, Operations 1200 EAST 151ST STREET, OLATHE KS 66062
Matthew Munn officer: VP, Man. Director - Auto OEM 28001 CABOT DRIVE, SUITE 100, NOVI MI 48377
Philip Straub officer: VP, Man. Director - Aviation 1200 EAST 151ST STREET, OLATHE KS 66062
Jonathan Burrell 10 percent owner 6300 WEST 143RD STREET, OVERLAND PARK KS 66223
Joseph J Hartnett director 425 NORTH MARTINGALE ROAD, SUITE 1000, SCHAUMBURG IL 60173
Min H Kao director, 10 percent owner, officer: Chairman and CEO 1200 E. 151ST ST., OLATHE KS 66062
Catherine A. Lewis director 325 NE NORTHGATE CROSSING, LEE'S SUMMIT MO 64064
Pao-chang Huang officer: General Manager - Garmin Corp. NO. 68, JANGSHU 2ND ROAD, SIJHIH, TAPEI F5 ROC
Danny J Bartel officer: Vice President,Worldwide Sales 1200 EAST 151ST STREET, OLATHE KS 66062
Donald Eller director
Andrew R Etkind officer: General Counsel and Secretary 1200 E 151 ST ST, OLATHE KS 66062

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