What does auto OEM — goodwill impairment mean?

The amount of value written off from past automotive segment acquisitions due to a decline in their expected future performance.

How do you interpret auto OEM — goodwill impairment?

An increase indicates a loss of value in the segment's assets and potential future earnings headwinds, while a zero or low value suggests stable or growing asset valuation.

How does auto OEM — goodwill impairment compare across companies?

Peers in the automotive supply chain often report similar impairment charges during periods of industry transition or technological disruption.

Garmin GRMN Auto OEM — Goodwill Impairment

Discontinued — last reported Q4 '19

Similar metrics at other companies

MODAutomotive — Goodwill Impairment

$125K—

LFUSAutomotive — Goodwill, Impairment Loss

$33.8M—

MODAutomotive — Goodwill Impaired Accumulated Impairment Loss

$9.2M0.0%

MLIOem — Goodwill Impaired Accumulated Impairment Loss

$9.97M—

GPCAutomotive — Goodwill impairment charge

$0—

GPCAutomotive — Goodwill accumulated impairment loss

$506.72M0.0%

Other financials

Income statement

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Revenue$1.8B+14.2%

Gross profit$1.0B+17.8%

Operating income$431.7M+29.7%

Net income$405.1M+21.7%

EPS (diluted)$2.09+21.5%

Balance sheet

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Cash & equivalents$2.3B+5.3%

Total debt$167.6M+19.5%

Total equity$9.3B+13.3%

Total assets$11.0B+11.9%

Cash flow

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Operating cash flow$536.0M+27.4%

CapEx$66.6M+66.3%

Free cash flow$469.4M+23.3%

Valuation

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Market cap$45.17B+6.9%

Enterprise value$43.04B+7.0%

P/E26×-2.8×

P/S6.1×-0.5×

Profitability

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Gross margin59.1%+0.6pp

Operating margin26.5%+1.2pp

Net margin23.3%+0.5pp

FCF margin19.4%+0.6pp

Returns & leverage

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Return on equity19.9%+0.9pp

Debt / equity0×0.0×

Current ratio4.4×+0.3×

Where this comes from

Reported directly by Garmin in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: Garmin’s 10-K, filed February 19, 2020, on SEC EDGAR. View the filing →

Questions, answered.

What does auto OEM — goodwill impairment mean?: The amount of value written off from past automotive segment acquisitions due to a decline in their expected future performance.
How do you interpret auto OEM — goodwill impairment?: An increase indicates a loss of value in the segment's assets and potential future earnings headwinds, while a zero or low value suggests stable or growing asset valuation.
How does auto OEM — goodwill impairment compare across companies?: Peers in the automotive supply chain often report similar impairment charges during periods of industry transition or technological disruption.