ResMed Inc (RMD)

Days of sales outstanding (DSO)

		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
Receivables turnover		5.53	5.73	5.93	5.43	5.44	5.98	6.12	5.99	5.85	5.60	5.84	6.21	6.96	6.25	5.57	5.20	5.89	5.96	6.38	6.11
DSO	days	65.99	63.71	61.59	67.22	67.11	61.02	59.66	60.93	62.38	65.20	62.49	58.75	52.45	58.37	65.54	70.14	61.99	61.25	57.20	59.75

March 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.53
= 65.99

The analysis of ResMed Inc’s Days of Sales Outstanding (DSO) over the specified period reveals notable fluctuations with an overall moderate upward trend. At the outset, as of June 30, 2020, the DSO was approximately 59.75 days, reflecting the average period the company takes to collect receivables. During the subsequent quarter ending September 30, 2020, DSO decreased slightly to 57.20 days, indicating a marginal improvement in receivables collection efficiency.

However, moving into the quarter ending December 31, 2020, DSO increased to 61.25 days, signifying a slight slowdown in collection cycles. This upward trend persisted into the first quarter of 2021, with DSO rising further to 61.99 days. A more pronounced increase was observed by June 30, 2021, reaching 70.14 days, suggesting a significant extension in the receivables collection period. This upward movement continued into the second half of 2021, with DSO settling at 65.54 days on September 30, 2021, before decreasing again to approximately 58.37 days as of December 31, 2021.

In 2022, there was a notable improvement, with DSO declining to 52.45 days by the end of the first quarter, indicating enhanced collection efficiency. Over the subsequent quarters, DSO experienced minor fluctuations—elevating to 58.75 days by June 30, 2022, and slightly rising again to 62.49 days by September 30, 2022, before reaching 65.20 days at year-end. The data for 2023 shows a relatively stable period with DSO oscillating around the mid-60s, culminating at 61.02 days as of December 31, 2023.

In the latest available data, the quarter ending March 31, 2024, exhibits a slight increase to 67.11 days, with subsequent quarters showing similar variances: June 30, 2024, at 67.22 days; September 30, 2024, decreasing marginally to 61.59 days; December 31, 2024, rising again to 63.71 days; and March 31, 2025, climbing to 65.99 days.

Overall, the DSO for ResMed Inc has demonstrated variability, with periods of improvement and deterioration. The fluctuations suggest that while the company has managed to reduce collection periods at certain times—such as in late 2021 and early 2022—it has also experienced extended collection periods in subsequent periods. The current DSO levels are generally within a 60-70 day range, indicating an average receivables collection period that is consistent with industry standards but subject to periodic elongation which could reflect changes in credit policies, customer payment behaviors, or operational adjustments.