GRMN Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Garmin Ltd - Alpha Spread
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Garmin Ltd
NYSE:GRMN

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Garmin Ltd
NYSE:GRMN
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Price: 180.17 USD -0.34% Market Closed
Market Cap: 34.7B USD
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Garmin Ltd

Revenue
5.6B USD
Cost of Revenue
-2.4B USD
Gross Profit
3.3B USD
Operating Expenses
-2B USD
Operating Income
1.3B USD
Other Expenses
124.6m USD
Net Income
1.4B USD

Margins Comparison
Garmin Ltd Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
CH
Garmin Ltd
NYSE:GRMN
34.6B USD
58%
22%
24%
JP
Sony Group Corp
TSE:6758
16.1T JPY
36%
9%
8%
JP
Panasonic Holdings Corp
TSE:6752
2.9T JPY
30%
4%
4%
KR
LG Electronics Inc
KRX:066570
18.2T KRW
24%
4%
1%
CN
TCL Technology Group Corp
SZSE:000100
70.2B CNY
15%
4%
2%
IN
Dixon Technologies (India) Ltd
NSE:DIXON
721.4B INR
9%
3%
2%
JP
Sharp Corp
TSE:6753
592.3B JPY
15%
-1%
-7%
JP
Nikon Corp
TSE:7731
505.2B JPY
44%
5%
5%
CN
Sichuan Changhong Electric Co Ltd
SSE:600839
23.1B CNY
11%
2%
1%
CN
Shenzhen MTC Co Ltd
SZSE:002429
21.1B CNY
18%
11%
9%
CN
Hisense Visual Technology Co Ltd
SSE:600060
20.2B CNY
16%
4%
4%
Country CH
Market Cap 34.6B USD
Gross Margin
58%
Operating Margin
22%
Net Margin
24%
Country JP
Market Cap 16.1T JPY
Gross Margin
36%
Operating Margin
9%
Net Margin
8%
Country JP
Market Cap 2.9T JPY
Gross Margin
30%
Operating Margin
4%
Net Margin
4%
Country KR
Market Cap 18.2T KRW
Gross Margin
24%
Operating Margin
4%
Net Margin
1%
Country CN
Market Cap 70.2B CNY
Gross Margin
15%
Operating Margin
4%
Net Margin
2%
Country IN
Market Cap 721.4B INR
Gross Margin
9%
Operating Margin
3%
Net Margin
2%
Country JP
Market Cap 592.3B JPY
Gross Margin
15%
Operating Margin
-1%
Net Margin
-7%
Country JP
Market Cap 505.2B JPY
Gross Margin
44%
Operating Margin
5%
Net Margin
5%
Country CN
Market Cap 23.1B CNY
Gross Margin
11%
Operating Margin
2%
Net Margin
1%
Country CN
Market Cap 21.1B CNY
Gross Margin
18%
Operating Margin
11%
Net Margin
9%
Country CN
Market Cap 20.2B CNY
Gross Margin
16%
Operating Margin
4%
Net Margin
4%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Garmin Ltd Competitors

Country Company Market Cap ROE ROA ROCE ROIC
CH
Garmin Ltd
NYSE:GRMN
34.6B USD
21%
17%
18%
21%
JP
Sony Group Corp
TSE:6758
16.1T JPY
13%
3%
5%
3%
JP
Panasonic Holdings Corp
TSE:6752
2.9T JPY
7%
3%
6%
4%
KR
LG Electronics Inc
KRX:066570
18.2T KRW
6%
2%
11%
6%
CN
TCL Technology Group Corp
SZSE:000100
70.2B CNY
6%
1%
2%
2%
IN
Dixon Technologies (India) Ltd
NSE:DIXON
721.4B INR
29%
7%
32%
23%
JP
Sharp Corp
TSE:6753
592.3B JPY
-74%
-9%
-2%
-2%
JP
Nikon Corp
TSE:7731
505.2B JPY
5%
3%
5%
4%
CN
Sichuan Changhong Electric Co Ltd
SSE:600839
23.1B CNY
6%
1%
7%
3%
CN
Shenzhen MTC Co Ltd
SZSE:002429
21.1B CNY
12%
6%
11%
9%
CN
Hisense Visual Technology Co Ltd
SSE:600060
20.2B CNY
10%
5%
8%
9%
Country CH
Market Cap 34.6B USD
ROE
21%
ROA
17%
ROCE
18%
ROIC
21%
Country JP
Market Cap 16.1T JPY
ROE
13%
ROA
3%
ROCE
5%
ROIC
3%
Country JP
Market Cap 2.9T JPY
ROE
7%
ROA
3%
ROCE
6%
ROIC
4%
Country KR
Market Cap 18.2T KRW
ROE
6%
ROA
2%
ROCE
11%
ROIC
6%
Country CN
Market Cap 70.2B CNY
ROE
6%
ROA
1%
ROCE
2%
ROIC
2%
Country IN
Market Cap 721.4B INR
ROE
29%
ROA
7%
ROCE
32%
ROIC
23%
Country JP
Market Cap 592.3B JPY
ROE
-74%
ROA
-9%
ROCE
-2%
ROIC
-2%
Country JP
Market Cap 505.2B JPY
ROE
5%
ROA
3%
ROCE
5%
ROIC
4%
Country CN
Market Cap 23.1B CNY
ROE
6%
ROA
1%
ROCE
7%
ROIC
3%
Country CN
Market Cap 21.1B CNY
ROE
12%
ROA
6%
ROCE
11%
ROIC
9%
Country CN
Market Cap 20.2B CNY
ROE
10%
ROA
5%
ROCE
8%
ROIC
9%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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