ResMed Inc (RMD)
Total asset 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 |
| Total assets | US$ in thousands | 6,872,390 | 6,751,710 | 5,095,850 | 4,728,120 | 4,587,380 |
| Total asset turnover | 0.68 | 0.63 | 0.70 | 0.68 | 0.64 |
June 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,685,300K ÷ $6,872,390K
= 0.68
Total asset turnover measures how efficiently a company generates revenue from its assets. In the case of ResMed Inc, the total asset turnover ratio has fluctuated over the past five years. In 2024, the ratio stood at 0.68, indicating that for every dollar of assets, the company generated $0.68 in sales. This was an improvement from the previous year, where the ratio was 0.62.
In 2022, the total asset turnover was 0.72, representing a peak in efficiency during the period under review. However, this declined slightly in 2021 to 0.69, before increasing again to 0.64 in 2020. Overall, the trend indicates some variability in how effectively ResMed Inc is utilizing its assets to generate revenue.
While a higher total asset turnover ratio generally suggests better asset utilization, it is important to consider industry norms and company-specific factors when interpreting this metric in isolation. Further analysis of ResMed Inc's operations and financial performance is recommended to gain a more comprehensive understanding of its asset management efficiency.
Peer comparison
Jun 30, 2024