ResMed Inc (RMD)

Days of inventory on hand (DOH)

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Inventory turnover 2.25 2.41 2.35 2.24 2.33 2.29 2.02 1.90 1.87 1.74 1.65 1.81 2.09 2.33 2.53 2.85 2.97 2.67 2.72 2.64
DOH days 161.91 151.21 155.36 162.85 156.87 159.43 180.93 192.09 195.08 210.33 221.58 201.63 174.75 156.89 144.55 128.23 122.86 136.61 134.18 138.13

June 30, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.25
= 161.91

The analysis of ResMed Inc.'s days of inventory on hand (DOH) over the specified periods reveals notable fluctuations, indicative of inventory management practices and operational dynamics. At the close of September 2020, the DOH was approximately 138.13 days, reflecting a relatively moderate inventory cycle. This figure experienced a slight decrease by December 2020 to 134.18 days, suggesting marginal improvements in inventory turnover or supply chain efficiencies.

Throughout 2021, the DOH demonstrated some variability, with an uptick to 136.61 days in March, followed by a decline to 122.86 days in June, indicating improved inventory management. However, the subsequent period saw a gradual increase, culminating in 144.55 days at the end of December 2021, pointing to longer inventory holding periods towards the year's conclusion.

The upward trend persisted into 2022, with DOH reaching a peak of 221.58 days in December, the longest duration within this timeframe. This marked a significant elongation in inventory on hand, possibly reflecting changes in inventory strategy, supply chain disruptions, or increased stockpiling. Early 2023 saw a reduction to 210.33 days in March, and further improvement to 195.08 days by June, yet the DOH remained elevated compared to 2021 levels.

In the latter half of 2023, there was a continued decreasing trend, with the DOH falling to 192.09 days in September, and further down to 180.93 days by December. This decline suggests ongoing efforts to optimize inventory levels, aligning more closely with standard operational cycles. Into the first quarter of 2024, the DOH further decreased to 159.43 days, maintaining a downward trajectory.

The subsequent quarters exhibited minor fluctuations, with the DOH around 156.87 days in June 2024 and an increase to 162.85 days in September 2024. By December 2024, it settled at approximately 155.36 days. In early 2025, the DOH was recorded at 151.21 days in March, followed by an increase to 161.91 days in June, indicating a potential reevaluation of inventory management practices or input costs.

Overall, the data indicate a significant elongation of inventory holding periods during 2022, followed by a strategic effort to reduce and stabilize inventory levels in subsequent periods. The trend suggests a focus on improving operational efficiency and supply chain responsiveness, contributing to shorter DOH figures in the most recent quarters.