ResMed Inc (RMD)
Payables turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,049,280 | 2,771,650 | 2,332,840 | 2,081,910 | 1,239,230 |
| Payables | US$ in thousands | 237,728 | 150,756 | 159,245 | 138,008 | 135,786 |
| Payables turnover | 12.83 | 18.39 | 14.65 | 15.09 | 9.13 |
June 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,049,280K ÷ $237,728K
= 12.83
The payables turnover ratio for ResMed Inc has shown fluctuation over the last five years. In 2024, the payables turnover ratio was 12.83 times, indicating that the company paid off its accounts payable approximately 12.83 times during the year. This represents a decrease from the previous year's ratio of 18.39 times in 2023.
The decrease in payables turnover from 2023 to 2024 may suggest that the company took longer to pay off its accounts payable obligations in 2024 compared to the previous year, which could potentially indicate a change in the company's payment practices or relationships with suppliers.
Despite the decrease in 2024, the payables turnover ratio remains relatively high compared to 2020 and 2021, indicating that ResMed Inc has historically been efficient in managing its accounts payable. It is important to assess the underlying reasons for the changes in the payables turnover ratio to better understand the company's financial health and management of working capital.
Peer comparison
Jun 30, 2024