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Garmin Analysis - Following the Business Decisions
Finance & Accounting
Pages 4 (1004 words)
Financial Analysis – Garmin Inc. [Student’s Name] [Course Title] [Instructor’s Name] [Date] 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).
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. ...
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