StudentShare solutions
Triangle menu

Garmin Analysis - Following the Business Decisions - Research Paper Example

Nobody downloaded yet

Extract of sample
Garmin Analysis - Following the Business Decisions

Apart from this, Garmin’s return on capital employed, equity and shareholders’ funds have all declined due to lower profitability in 2011. There are no significant changes recorded in the balance sheet of the company apart from the increase in investment in marketable securities and the issuance of additional paid in capital (Garmin, 2011).   2011 2010 2009 2008 2007 Current Ratio 2.98 3.73 3.50 4.14 2.91 Acid Test Ratio 2.51 3.16 3.05 3.25 2.28 Return on Capital Employed 0.27 0.39 0.49 0.77 0.89 Return on Equity 0.16 0.19 0.25 0.33 0.36 Return on Ordinary Shareholders' Funds (ROSF) 28.98 32.52 70.30 73.15 78.81 (Garmin, 2011; Garmin, 2010; Garmin, 2009; Garmin, 2008) Cash Flow Trends As far as the cash flows from operating activities are concerned, the company managed to improve the picture through efficient performance in 2011. Although the net income of the company declined slightly in comparison with the previous financial year, the management still managed to show an increase in the operating cash flows.   2011 2010 2009 2008 2007 Operating Cash Flows 822,334 770,637 1,094,456 862,164 682,088 Investing Cash Flows (488,198) (72,869) (547,869) (56,349) (175,695) Financing Cash Flows (307,413) (510,821) (161,243) (809,109) (136,117) (Garmin, 2011; Garmin, 2010; Garmin, 2009; Garmin, 2008) On the other hand, cash flows from investing activities remained negative as they have continued to be the same in the past years. However, in 2011 there has been a significant rise in the negative balance of cash outflows from investing activities. The reason behind this significant increase is the purchase of marketable securities by the company worth $ 1,172,555,000 in 2011. Similar to the trends shown in cash flows from investing activities, the cash flows from financing activities have also continued to show negative balance in 2011 as they have been in the previous four years. Major Capital Expenditures The major capital expenditures of the company in 2011, as mentioned earlier in the balance sheet analysis, included the purchase of $ 1,172,555,000. This purchase is in line with the investment policy of the company, in light of which, the company aims at investing in less risky securities. In 2011, the net investments of Garmin in fixed securities increased to $ 491 million as compared to the figure of $ 25.5 million in 2010. The result of these safe play investment decisions has earned Garmin returns of 1.7 percent in 2011 (Garmin, 2011). Although this investment policy may be justified on the grounds that there are still traces of the recent financial crisis which can influence risky play, but at the same time, it is expected that Garmin’s management shall be more prolific in determining the course of its business by exploring investment or capital expenditure options which are more effective and helpful in enabling the company to regain its lost momentum (Cavallaro, 2009). Apart from this, the company acquired several business entities, which is appreciable since it will allow the company to stretch its market presence further. The recently acquired business entities include NAVIGON AG, TriTronics Inc. and two other worldwide distributing companies. Although the company has faced fierce competition from other brands and has faced threatening anticipations of market share loss due to the popularity gained by smart ...Show more


Financial Analysis – Garmin Inc. Financial Analysis – Garmin Inc. Introduction With the innovation and success of products launched by Apple and other mobile phone device manufacturing companies, the demand for Garmin’s products was expected to falter in the years to come (Seeking Alpha, 2009)…
Author : xgorczany
Garmin Analysis - Following the Business Decisions essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"Garmin Analysis - Following the Business Decisions"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Business Analysis
The store was started initiated by Sam Walton in 1962 in Rogers, Ark, with the aim of providing best quality products at low prices; the vision of the founder was to develop a single store from where the customers can purchase all their merchandise and grocery and they don’t have to go to various stores for buying their important and vital things.
4 pages (1000 words) Research Paper
Business analysis
The crisis has destabilized the capital market leading to reduced shareholders value. Like other companies, Domtar has had to face the economic crisis though it has done so successfully and retained its position as the second best performing Paper Company in the world.
6 pages (1500 words) Research Paper
Retail Business Analysis
Market segmentation strategy is the grouping of consumers with similar needs that an organization can satisfy by tailoring the elements of the marketing mix. Segmentation strategy advances the profit margins thus obtaining an admirable market divide. When markets are declining and the differentiation is at the premium, segmentation can show the disparity separating accomplishment and failure (Weinstein, 2004).
4 pages (1000 words) Research Paper
Garmin Analysis - Looking To the Future
The company’s current position in its existing markets is threatened by the strong competition and the company’s position is worsening particularly related to its automotive business segment. As the company’s CEO, it is time to make certain strategic and financial decisions which could help the company to revive its position to regain its position in the market and generate healthy returns from its businesses.
8 pages (2000 words) Research Paper
Networking capabilities of the Garmin GNS 430/530 Avionics system
The report will then discuss the hardware installations of the GNS and how they were vital for its success in the past years as a communication device. The benefits of using a GNS 430 device will then be evaluated as well as its disadvantages. Finally, the conclusion which summarizes the report as well as looks at what future trends are expected for it as newer devices come into the market.
6 pages (1500 words) Research Paper
Global Business Cultural Analysis
Furthermore, the paper provides detail information on comparison of cultural elements and dimensions between the Nation of Singapore and the United States of America. At the end, the paper provides information on US
7 pages (1750 words) Research Paper
Legal Aspects of Business Decisions Unit 2 IP
The defendant argued that West Shell Jr. et al were liable to a limited extend in losses incurred by the underwriters in England. On the contrary, the plaintiff argues that since the contract had been transferred from England to Ohio, failure
1 pages (250 words) Research Paper
Business Analysis
t, W Hotel San Francisco has emerged to be the most desirable destination for mingling, relaxing, exploring, tasting and sharing not only in San Francisco, but in the entire California. W Hotel San Francisco offers a wide range of services suited for its diverse categories of
2 pages (500 words) Research Paper
Business Analysis
The restaurant has an elegant look and sophisticated atmosphere which help Bourbon Steak to target executive class people with high disposable income. There are many guests who check into the Westin hotel for business or official purposes. They stay there for some
2 pages (500 words) Research Paper
Business Analysis
The main target market that the business in interested in is the middle income class of the society. This is because they have adequate
2 pages (500 words) Research Paper
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Let us find you another Research Paper on topic Garmin Analysis - Following the Business Decisions for FREE!
Contact us:
Contact Us Now
  • About StudentShare

  • Testimonials

  • FAQ

  • Blog

  • Free Essays
  • New Essays
  • Essays

  • The Newest Essay Topics
Join us:
Contact Us