ResMed Inc (RMD)

Days of inventory on hand (DOH)

		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	Jun 30, 2020
Inventory turnover		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	2.94
DOH	days	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	124.14

March 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.41
= 151.21

The data on days of inventory on hand (DOH) for ResMed Inc. over the specified periods demonstrates notable fluctuations in inventory management efficiency. Starting from June 30, 2020, with a DOH of approximately 124.14 days, there was a consistent upward trend, reaching a peak of approximately 221.58 days by December 31, 2022. This signifies a significant increase in the inventory holding period, indicating potentially prolonged stock turnover times or shifts in inventory practices.

From the peak in late 2022, a gradual reduction in DOH is observable, suggesting efforts to improve inventory management or changes in sales velocity. By March 31, 2023, the DOH decreased to approximately 210.33 days, and continued improvements brought it down further in subsequent periods, reaching approximately 151.21 days by March 31, 2025.

Overall, the trend reflects an initial prolongation of inventory holding periods across 2020 to 2022, followed by a strategic effort to optimize inventory levels starting in 2023. The declining DOH in recent periods signals improved inventory turnover and potentially more efficient supply chain operations.