ResMed Inc (RMD)

Inventory turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cost of revenue	US$ in thousands	2,091,360	2,029,990	1,867,330	1,553,820	1,357,720
Inventory	US$ in thousands	927,711	822,250	998,012	743,910	457,033
Inventory turnover		2.25	2.47	1.87	2.09	2.97

June 30, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,091,360K ÷ $927,711K
= 2.25

The inventory turnover ratio for ResMed Inc. demonstrates notable fluctuations over the specified period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the ratio was 2.97, indicating the company sold and replenished its inventory approximately 3 times during that fiscal year. This ratio decreased significantly to 2.09 by June 30, 2022, reflecting a slowdown in inventory sales or increased inventory holdings, which could suggest stockpiling or a decline in demand. The downward trend continued into June 30, 2023, with the ratio declining further to 1.87, potentially signaling continued challenges in inventory movement or reduced sales efficiency during that period.

However, in the subsequent year, there was a notable recovery, with the ratio rising to 2.47 as of June 30, 2024. This increase suggests an improvement in inventory management efficiency or an uptick in sales activity relative to inventory levels. Nonetheless, the ratio slightly declined afterward to 2.25 as of June 30, 2025, indicating a modest reduction in inventory turnover efficiency compared to the previous year, but remaining substantially higher than the lows observed in 2022 and 2023.

Overall, the trend reflects a period of decreased inventory turnover efficiency from mid-2021 to mid-2023, followed by partial recovery in the subsequent years. The fluctuations merit further analysis into internal factors such as inventory management policies, product mix, or external factors like market demand dynamics to fully contextualize these ratio movements.