ResMed Inc (RMD)

Inventory turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	2,029,990	1,867,330	1,553,820	1,357,720	1,239,230
Inventory	US$ in thousands	822,250	998,012	743,910	457,033	416,915
Inventory turnover		2.47	1.87	2.09	2.97	2.97

June 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,029,990K ÷ $822,250K
= 2.47

Inventory turnover is a key ratio that measures how efficiently a company manages its inventory. ResMed Inc's inventory turnover has shown some fluctuations over the past five years. The ratio was 3.71 in 2024, indicating that the company's inventory was sold and replaced 3.71 times during the year. This was an improvement compared to the previous four years, showing that the company managed its inventory more effectively in 2024.

In 2023, the inventory turnover was 2.78, which was lower compared to 2024. This suggests that in 2023, ResMed Inc took longer to sell and replace its inventory. The ratio improved to 3.14 in 2022, indicating better inventory management that year. The highest inventory turnover of 4.56 was recorded in 2021, demonstrating a significant improvement in inventory efficiency that year.

In contrast, the inventory turnover was 2.97 in 2020, which was lower than 2021 but higher than 2023. This indicates that ResMed Inc struggled with inventory turnover in 2020 compared to the peak year of 2021.

Overall, the trend in ResMed Inc's inventory turnover shows some variability over the past five years, with improvements in some years and declines in others. The company should continue to monitor and manage its inventory effectively to ensure optimal operational efficiency.