GRMN GARMIN LTD

Overview and Growth

GARMIN LTD generated $7.25B of revenue in fiscal 2025, with net income of $1.66B and an operating cash inflow of $1.63B. At $7.25B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Compared with $6.30B in fiscal 2024, revenue recorded a 15.1% year-over-year increase. The company reported diluted EPS of $8.59, adding a shareholder-level measure to the absolute income figures considered below. Diluted EPS increased by 17.7% from $7.30 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. The revenue-to-assets relationship was 0.66x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

Gross profit was $4.26B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross profit represented 58.7% of revenue, showing how much of the top line remained after direct costs. The reported operating result was $1.88B, capturing profitability after direct costs and the operating expenses reflected in the statements. Operating margin measured 25.9%, showing the portion of revenue preserved after the full set of operating costs. The bottom-line result was net income of $1.66B, after the operating, financing, tax, and other items recognized for the period. Measured against reported revenue, net income produced a 23.0% margin after operating costs and the remaining recognized items. The earnings statement records $2.01B of pretax income, the profit base against which the reported tax provision can be assessed. Pretax income represented 27.8% of revenue, placing earnings before tax in the context of the company’s operating scale. The reported income-tax provision was $350.65M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 17.4%, without assuming a statutory-rate comparison. The relationship between net income and period-end equity was 18.5%, indicating the profitability achieved on book capital. Net income represented 15.1% of period-end assets, placing the company’s bottom-line result against the total resource base employed.

Liquidity and Capital Structure

The company held $10.99B of assets against $2.02B of liabilities and $8.97B of equity, revealing how the asset base was financed. At period end, current assets of $6.25B compared with current liabilities of $1.72B, defining the company’s short-term resource position. At 3.63x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Cash and equivalents totaled $2.28B, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 132.5% of current liabilities, showing how much near-term coverage came from cash alone. Liabilities represented 18.4% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 20.7%, a balance-sheet composition measure rather than a liquidity forecast. Total assets were 14.2% higher than fiscal 2024 assets of $9.63B, measuring the company’s own balance-sheet change.

Cash Flow and Earnings Quality

The company reported $1.63B of operating cash flow, a cash inflow that shows the cash generated by operations. Operating cash flow equaled 0.98x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $270.45M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital spending absorbed 16.6% of operating cash flow, quantifying the share of cash from operations directed to investment. The combination of operating cash flow and capital spending produced $1.36B of positive free cash flow for the period. The free-cash-flow margin was 18.8%, measuring cash remaining after capital spending against revenue. The free-cash-flow-to-assets relationship was 12.4%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Dec 27, 2025. Analysis generated Oct 21, 2026.