ResMed Inc (RMD)

Payables 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
Payables	US$ in thousands	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	116,148	114,322	109,742
Payables turnover		12.83	17.06	14.93	16.34	18.36	16.19	12.51	12.99	14.65	15.45	13.72	12.55	15.09	15.59	13.54	12.22	9.13	10.51	10.34	10.48

June 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,049,286K ÷ $237,728K
= 12.83

The payables turnover ratio for ResMed Inc has displayed fluctuations over the past 20 quarters, ranging from a low of 9.13 to a high of 18.36. The ratio measures how efficiently the company is managing its accounts payable by evaluating how many times the company pays off its suppliers during a specific period.

A higher payables turnover ratio suggests that the company is paying its suppliers more frequently, which could indicate strong liquidity or stringent payment terms with suppliers. On the other hand, a lower ratio may indicate that the company is taking longer to pay its bills, potentially signaling liquidity issues or more favorable payment terms with suppliers.

In the most recent quarter, the payables turnover ratio stood at 12.83, which indicates that ResMed Inc is paying its suppliers approximately 12.83 times within the period. It is important to consider industry benchmarks and trends over time to contextualize the company's payables turnover ratio and its implications for the company's financial health and working capital management.