(Posted by: Kostis Chlouveraki, Nadia Tan, Florent Degates, Thomas Annicq, Erdin Beshimovs)
What would Buffett say for Garmin's future?: "A very interesting article states that the econofinancial future of Garmin may be predicted, if we apply the Buffett's stock-picking strategy. Some of the criteria that are stated in the article and are fulfilled by Garmin are given below:
1. Market Capitalization should be at least $250M (for Garmin is $5.7B)
2. Current Ratio should be at least 1.5 (for Garmin is 4.2)
3. EPS for the latest annual period should be above the EPS in the prior year and 5 years ago
4. Long-term debt must not be higher than 10% of working capital. This is equivalent to a low Quick Ratio, and for Garmin this ratio is close to 3.