ResMed Inc (RMD)

Payables 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
Payables	US$ in thousands	278,157	237,728	150,756	159,245	138,008
Payables turnover		7.52	8.54	12.39	9.76	9.84

June 30, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,091,360K ÷ $278,157K
= 7.52

The payables turnover ratio for ResMed Inc. demonstrates notable fluctuations over the period from June 30, 2021, to June 30, 2025. Specifically, the ratio was 9.84 in 2021, indicating that the company settled its average accounts payable approximately 9.84 times during that fiscal year. In 2022, this ratio slightly decreased to 9.76, reflecting a marginal reduction in the frequency of payables being settled within the period, which could suggest a slight extension in payables management or changes in procurement/cash flow timing.

A more significant increase occurred in 2023, where the ratio rose to 12.39. This upward movement indicates that ResMed Inc. accelerated its payables turnover, settling its obligations roughly 12.39 times during that year. Such an increase might imply improved liquidity management, better negotiation terms with suppliers, or an overall increase in the pace of accounts payable settlement.

However, subsequent years showed a decline in the payables turnover ratio. In 2024, the ratio decreased to 8.54, suggesting a deceleration in settling accounts payable compared to the previous year. This could be indicative of a strategic shift towards more extended payment terms or potential liquidity constraints. The downward trend continued in 2025 with a ratio of 7.52, the lowest over the observed period, further emphasizing an increased tendency to delay payables or a change in supplier credit terms.

Overall, the data reveals a pattern of initial stability in 2021 and 2022, followed by a notable peak in 2023, and a subsequent decline in 2024 and 2025. These fluctuations may reflect changing operational strategies, liquidity positions, or supplier relationship dynamics impacting Payables Turnover over these fiscal years.