Garmin (GRMN) Financials

Garmin (NYSE: GRMN) has shown steady financial performance over the past four years across its income statements, balance sheets, and cash flow statements. Here are the key trends and observations:

• Increasing Revenue and Net Income: Operating revenues have grown from $1.14 billion in Q3 2022 to $1.81 billion in Q2 2025, showing consistent top-line growth. Correspondingly, net income increased from $210.8 million in Q3 2022 to $400.8 million in Q2 2025, reflecting improved profitability.
• Strong Gross Profit Margins: Gross profits have stayed robust, with total gross profit around $1.07 billion in recent quarters while controlling cost of revenue effectively (around $740 million in Q2 2025), demonstrating good margin management.
• Consistent Operating Income Growth: Operating income rose from $270 million in Q3 2022 to $472 million in Q2 2025, supported by controlled operating expenses and stable SG&A and R&D spending relative to revenue growth.
• Healthy Cash Flows from Operations: Net cash from operating activities has remained strong, $420 million in Q1 2025 and $173 million in Q2 2025, supporting capital expenditures and shareholder returns sustainably.
• Substantial Cash and Liquid Investments: Cash and equivalents plus short-term investments increased from roughly $1.6 billion in early 2023 to about $2.6 billion by Q2 2025, improving liquidity and financial flexibility.
• Shareholder Returns via Dividends and Buybacks: Garmin actively returned capital through dividends (e.g., $173 million paid in Q2 2025) and share repurchases (e.g., $66.5 million in Q2 2025), supporting shareholder value.
• Inventory Levels Increased Significantly: Inventory increased from $1.3 billion in Q2 2022 to nearly $1.8 billion by Q2 2025, which could indicate build-up in stock – while this might support sales, it also represents higher working capital requirements.
• Accounts Receivable Growth: Accounts receivable rose from $610 million in Q1 2023 to over $1 billion in Q2 2025, implying higher credit sales or delayed collections, which should be monitored for impact on cash flow.
• Increase in Deferred Revenue and Liabilities: Both current and noncurrent deferred revenues have increased, reaching over $100 million in recent periods, indicating potentially more advanced billings which might impact revenue recognition timing.
• Negative Impact of Exchange Rate Changes: Currency effects have intermittently impacted net cash, with both positive and negative swings (e.g., a -$33.8 million effect in Q4 2024), creating some volatility in reported cash positions.

Summary: Garmin's financials over the last four years demonstrate healthy and growing revenues and profitability with solid cash generation and strong liquidity. The company supports shareholders with dividends and buybacks. However, close attention is warranted on inventory and receivables growth as well as deferred revenue increases, which could affect future cash flows. Overall, Garmin shows a stable financial profile attractive to investors focusing on profitability and capital returns.