Garmin Ltd. — Earnings Quality Grade C
GRMN · Technology
Some red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 63 days, change +6 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 15.1%, CFFO 14.0%. Cash follows revenue
Expense Quality
Inventory 20.2% vs COGS 15.0%. Normal
CapEx growth 39.7% is >2x revenue growth 15.1%
SG&A/Gross Profit = 29.5%, excellent (<30%)
Gross margin 58.7%, change +0.0pp. Stable
Cash Flow Quality
CFFO/NI = 0.98. Profits backed by cash
FCF $1.4B, FCF/NI = 0.82
Accruals ratio = 0.3%. Low accruals
Cash $2.7B covers debt $0.2B
Balance Sheet Health
Goodwill+Intangibles $1.0B = 11% of equity. Manageable
Debt/EBITDA = 0.1x. Healthy
Other assets -10.3% vs revenue 15.1%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 26% YoY. Normal
Manipulation Score
M-Score = -2.24 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10