ResMed Inc (RMD)

Payables 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
Payables US$ in thousands 222,561 220,313 249,278 237,728 177,445 202,395 177,048 150,756 161,896 196,003 181,485 159,245 149,797 163,369 173,696 138,008 117,222 122,166 117,589 135,786
Payables turnover 9.36 9.41 8.25 8.05 10.70 9.30 10.28 12.39 10.84 8.31 8.63 9.76 10.33 9.15 8.30 9.84 11.03 10.57 10.74 9.03

March 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,082,362K ÷ $222,561K
= 9.36

The payables turnover ratios for ResMed Inc. over recent fiscal periods demonstrate fluctuations indicative of the company's evolving management of accounts payable relative to purchases or cost of goods sold.

In the fiscal year ending June 30, 2020, the ratio stood at 9.03, increasing significantly to 10.74 by September 30, 2020. This upward trend continued into December 2020 at 10.57 and further into March 2021 at 11.03, suggesting an improvement in paying suppliers more quickly relative to the volume of purchases.

During 2021, the ratio experienced a decline to 9.84 in June, followed by a decrease to 8.30 in September — the lowest in the observed period — before rebounding to 9.15 in December and rising again to 10.33 in March 2022. This indicates some irregularity in the company's payment cycle during this period.

In 2022, the ratio peaked at 10.84 in March, but then gradually declined to 8.63 in September and 8.31 in December, reflecting possibly longer payment periods or changes in purchasing behavior. The ratio surged again to 10.70 in March 2023, surpassing previous peaks, then increased further to 12.39 in June 2023. This suggests a notably faster payment cycle or a rise in the efficiency of settling liabilities during this period.

Subsequent quarters showed some decline to 10.28 in September and 9.30 in December 2023, with a slight increase to 10.70 in March 2024. The ratio then declined to 8.05 by June 2024, after which it modestly increased to 8.25 in September 2024 and 9.41 in December 2024. The ratio for March 2025 settled at 9.36.

Overall, the payables turnover ratio exhibits periods of both acceleration and deceleration, with notable peaks around March and June 2023, and troughs during the latter half of 2022. These fluctuations imply that ResMed's payment policies or operational conditions affecting accounts payable have varied across the observed timeframe, reflecting adaptations to external pressures, supplier negotiations, or internal cash management strategies.