ResMed Inc (RMD)

Inventory turnover

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
Cost of revenue (ttm) US$ in thousands 2,082,362 2,072,437 2,057,490 1,913,177 1,898,918 1,882,661 1,820,823 1,867,330 1,754,890 1,629,047 1,565,574 1,553,816 1,546,992 1,495,198 1,442,170 1,357,727 1,293,291 1,291,575 1,263,074 1,225,792
Inventory US$ in thousands 862,641 882,103 917,982 822,250 829,458 933,214 958,233 998,012 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
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

March 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,082,362K ÷ $862,641K
= 2.41

The inventory turnover ratio of ResMed Inc. demonstrates notable fluctuations over the observed period from June 2020 to March 2025. Initially, during the fiscal year ending June 30, 2020, the ratio stood at 2.94, indicative of a solid efficiency in inventory management. However, this ratio experienced a decline through subsequent quarters, reaching a low of 1.65 by December 2022. This trend suggests a gradual reduction in inventory turnover efficiency over this period, potentially reflecting increased inventory holdings relative to sales or challenges in inventory liquidation.

Between the end of 2022 and March 2023, there was a modest improvement, with the ratio ascending to 1.74, continuing upward trajectory into the subsequent quarters. By the end of September 2024, the inventory turnover had recovered slightly to 2.24, nearing the higher levels observed in 2020. The most recent data point for March 2025 indicates a ratio of 2.41, suggesting a further stabilization or modest improvement in inventory management efficiency.

Overall, the trend indicates a decline in inventory turnover ratio from mid-2020 to late 2022, followed by a gradual recovery in subsequent periods. The fluctuations could be associated with strategic adjustments in inventory policies, supply chain dynamics, or changes in demand. The current ratio around 2.41 is suggestive of a relatively steady but moderate inventory turnover rate in the recent fiscal periods, aligning with a potentially optimized inventory management approach compared to the lower levels observed during 2022.