ResMed Inc (RMD)

Receivables turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	4,685,300	4,222,990	3,578,130	3,196,820	2,957,010
Receivables	US$ in thousands	837,275	704,909	575,950	614,292	474,643
Receivables turnover		5.60	5.99	6.21	5.20	6.23

June 30, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $4,685,300K ÷ $837,275K
= 5.60

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.