ResMed Inc (RMD)
Working capital 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 current assets | US$ in thousands | 2,357,720 | 2,367,830 | 1,931,480 | 1,574,760 | 1,523,460 |
| Total current liabilities | US$ in thousands | 910,655 | 758,533 | 689,299 | 911,766 | 602,761 |
| Working capital turnover | 3.24 | 2.62 | 2.88 | 4.82 | 3.21 |
June 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,685,300K ÷ ($2,357,720K – $910,655K)
= 3.24
ResMed Inc's working capital turnover has fluctuated over the past five years. In the most recent year, as of June 30, 2024, the working capital turnover ratio was 3.23. This indicates that ResMed Inc generated $3.23 in revenue for every dollar of working capital invested in the business during the year. Compared to the previous year, there has been an improvement in efficiency in utilizing working capital, as the ratio increased from 2.59 in June 2023 to 3.23 in June 2024.
However, it is worth noting that the working capital turnover ratio was higher in June 2021 at 4.93, suggesting that the company was more efficient in utilizing its working capital to generate revenue in that particular year. The ratios in June 2022 and June 2020 were 2.94 and 3.21, respectively, indicating moderate efficiency in working capital management during those years.
Overall, ResMed Inc's working capital turnover ratio has shown variability over the five-year period, with fluctuations reflecting changes in the company's operational efficiency and effectiveness in utilizing its working capital resources.
Peer comparison
Jun 30, 2024