ResMed Inc (RMD)
Receivables turnover
Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 4,681,150 | 4,175,350 | 3,649,870 | 3,265,510 | 2,957,010 |
Receivables | US$ in thousands | 837,275 | 704,909 | 575,950 | 614,292 | 474,643 |
Receivables turnover | 5.59 | 5.92 | 6.34 | 5.32 | 6.23 |
June 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,681,150K ÷ $837,275K
= 5.59
The receivables turnover ratio for ResMed Inc has been fluctuating over the past five years. In general, a higher receivables turnover ratio indicates that the company is collecting its outstanding receivables more frequently during the year.
Looking at the trend, we see a slight decrease in the receivables turnover ratio from 6.23 in 2020 to 5.59 in 2024. This could suggest a lengthening in the average collection period for the company's accounts receivable, which may be a cause for concern as it could lead to cash flow issues.
However, it's important to note that the receivables turnover ratio for ResMed Inc remains relatively stable and within a reasonable range over the years, indicating that the company's credit policies and collection efforts are generally effective. Overall, further analysis of the company's receivables management practices and industry benchmarks would be necessary to gain a more comprehensive understanding.
Peer comparison
Jun 30, 2024