Garmin Ltd./ Financial Analysis - 4318 Words

I. Garmin Ltd Corporate History/ Company Overview Garmin Ltd. and its subsidiaries, design, manufacture, market and sell navigation, communication and information devices and applications since 1989. Garmin Ltd. (Nasdaq: GRMN) Is a company incorporated in the Cayman Islands on July 24, 2000 as a holding company for Garmin Corporation, a Taiwan Corporation, facilitating public offering of Garmin shares to the United States. Garmin has principal subsidiaries in the United States, Taiwan and the United Kingdom. Garmin owns, directly or indirectly, all of the operating companies in the Garmin group. The development of Global Positioning System (GPS) devices was offered an optimal scenario when the†¦show more content†¦Quick Ratio: (Current Assets- Inventory) / Current Liabilities 2009 2008 2007 Tom Tom Sector 3.05 3.25 2.28 0.88 1.46 Garmin shows a slight quick ratio decrease compared to 2008, however its ability to pay-off short term obligations without relying on the sale of its inventories, is greater than the industry sector, while Tom Tom, with a 2009 quick ratio of 0.88 is not in liquid condition. Garmin’s quick ratio is more than twice higher than the sector average and its competitor, and it might indicate that assets are underutilized, potentially indicating inefficiency in utilizing assets. But like any measure of performance, it s necessary to look behind the numbers and examine the component parts. Asset Management Ratios To determine effectiveness on the company’s management of assets, asset management ratios would give measures indicating such effectiveness. If a company has excessive investments in assets, free cash flow and stock price might be reduced. If a company does not have enough assets, it might lose sales, hurting profitability, free cash flow and stock price (Brigham Ehrardt, 2008) Asset Turnover Ratio: Sales / Total Assets 2009 2008 2007 Tom Tom Sector 0.87 1.19 0.97 0.54 0.37 By measuring the sales generated per dollar of assets invested in the organization, total asset turnoverShow MoreRelatedCompany Overview of Garmin1026 Words   |  4 Pagesmanufacturer Garmin has gone from a specialized producer of niche equipment to a Wall Street champion in 2007. Since that time, the company has diminished into a relative has-been according to many analysts. For example, in late 2007 the Garmin stock price reached a record high of over one hundred twenty dollars a share. However, in 2008, the stock price fell below twenty dollars a share and today the stock rests in the mid-forties after a mild recovery from the fifty two week low. This analysis looks intoRead MoreTomtom Marketing4498 Words   |  18 Pages449425 459114 437979 450453 Executive summary The purpose of this report is to analyze TomTom’s internal and external environment and come up with a relevant new strategy that could be implemented by TomTom in the near future. The external analysis concludes that TomTom is suffering from two factors; one is an increasing (indirect) competition in developing (PDA) consumer markets and second is a decreasing sales in their most important markets. As a result TomTom has started to shift itsRead MoreGarmin7016 Words   |  29 PagesGarmin (GRMN) Recommendation: Buy Industry: Communication Equipment Recent Price $59.37 Analyst: Jennifer Traynor Target Price $60.76 Report Date: 5/2/2007 Highlights †¢ Large-cap growth stock with a market cap of $11.68 billion. †¢ Garmin has the number one GPS market share of 50% in the U.S. and the number two GPS market share in Europe of 16.7% †¢ Consumer demand for GPS products will continue to increase as technology improves and produces new and innovative products. †¢ High historical ROICRead MoreAccounting Microline Case1418 Words   |  6 PagesAcquisition of Garmin Ltd. And Subsidiaries Garmin Ltd is under consideration for acquisition by Mega Industries. As a result, an assessment of Microline’s financial condition and assessment is necessary to evaluate the company as a suitable candidate. Our team has prepared a memo stating Microline’s earning power potential , solvency position, and to which extent the companies financial statements reflect the true financial position and performance. We have also included an analysis regardingRead MoreTom Tom Marketing Strategy3294 Words   |  14 Pagescivilian use in mid 80ies has commenced its commercial use by removing selective signal availability in 2000. In early 90ies there were already several pioneer companies (Garmin, TomTom) setting up new technology companies developing GPS receiver devices. Since then market has grown to estimated $8.2 billions worldwide in 2009 (Garmin) and is still considered as a market with great potential. Considering the aimed usage, target customers market can be divi ded into three major segments: †¢ Military †¢Read MoreSwot Analysis of Sheng Siong7005 Words   |  29 PagesCommunication | | | | | | | Table of Contents 1. Executive Summary 3 2. Current Marketing Situation 4 2.1 Market Summary 4 2.2 Competition 6 2.3 Product Offering 7 2.4 SWOT Analysis 9 2.5 Critical Issues 10 3. Market Strategy 10 3.1 Misson 10 3.2 Marketing Objectives 13 3.3 Financial Objectives 13 3.4 Target Market 13 3.5 Positioning 15 3.6 Marketing Mix 15 4. Fiancials 18 4.1 Sales Forecast 18 4.2 Expense Forecast 20 5. Controls 21 5.1 Implementations 21 5.2