ResMed Inc (RMD)

Inventory turnover

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Cost of revenue (ttm)	US$ in thousands	3,049,286	3,027,953	3,021,948	2,892,847	2,768,595	2,620,621	2,451,382	2,357,125	2,332,838	2,314,489	2,240,682	2,180,368	2,081,915	1,827,736	1,654,650	1,436,842	1,239,272	1,220,833	1,182,298	1,149,839
Inventory	US$ in thousands	822,250	829,458	933,214	958,233	998,012	1,011,270	988,955	864,852	743,910	664,943	592,146	506,644	457,033	484,061	474,821	478,006	416,915	358,772	377,784	357,033
Inventory turnover		3.71	3.65	3.24	3.02	2.77	2.59	2.48	2.73	3.14	3.48	3.78	4.30	4.56	3.78	3.48	3.01	2.97	3.40	3.13	3.22

June 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,049,286K ÷ $822,250K
= 3.71

Based on the data provided, ResMed Inc's inventory turnover has fluctuated over the past few quarters. The inventory turnover ratio measures how efficiently the company is managing its inventory by showing how many times the inventory is sold and replaced over a certain period.

The inventory turnover ratio for ResMed Inc has shown an overall increasing trend from 2.48 in December 2022 to 3.71 in June 2024. This indicates that the company is turning over its inventory more frequently. A higher inventory turnover ratio is generally considered positive as it suggests that the company is selling goods quickly and efficiently.

However, it's important to note that the inventory turnover ratio can vary by industry, and comparing ResMed Inc's ratio to industry benchmarks or historical data for the company can provide additional context for the analysis. Additionally, a very high inventory turnover ratio could potentially indicate inventory shortages or stockouts, which may impact sales and customer satisfaction.

Overall, the increasing trend in ResMed Inc's inventory turnover ratio indicates improved efficiency in managing inventory, but further analysis and comparison with industry peers are recommended to gain a more comprehensive understanding of the company's inventory management practices.