ResMed Inc (RMD)

Receivables turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Revenue	US$ in thousands	5,146,330	4,685,300	4,222,990	3,578,130	3,196,820
Receivables	US$ in thousands	939,492	837,275	704,909	575,950	614,292
Receivables turnover		5.48	5.60	5.99	6.21	5.20

June 30, 2025 calculation

Receivables turnover = Revenue ÷ Receivables
= $5,146,330K ÷ $939,492K
= 5.48

The receivables turnover ratio for ResMed Inc. demonstrates fluctuations over the observed period from June 30, 2021, to June 30, 2025. Starting at 5.20 times in 2021, the ratio increased significantly to 6.21 times in 2022, indicating an improvement in the efficiency of collecting receivables. This suggests that the company was able to collect its accounts receivable approximately 6.21 times within a year, reflecting more effective credit and collection policies during that period.

However, in 2023, the ratio experienced a slight decline to 5.99 times, pointing to a marginal decrease in collection efficiency. Despite this decrease, the ratio remained relatively high, signifying that the company continued to manage receivables reasonably effectively.

The subsequent years show a continued, gradual decline in the receivables turnover ratio, reaching 5.60 times in 2024 and further decreasing to 5.48 times in 2025. This downward trend suggests that the company's receivables collection period may be lengthening slightly over time, potentially indicating a loosening of credit policies, challenges in receivables collection, or changes in customer payment behaviors.

Overall, although the ratio remains within a relatively stable range, the observed decline after 2022 merits attention, as it could impact cash flow and liquidity over time if the trend persists. The company's receivables management strategies should be monitored to assess whether these changes reflect strategic decisions or emerging collection challenges.