ResMed Inc (RMD)
Working capital 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 |
| Total current assets | US$ in thousands | 3,505,600 | 2,357,720 | 2,367,830 | 1,931,480 | 1,574,760 |
| Total current liabilities | US$ in thousands | 1,019,120 | 910,655 | 758,533 | 689,299 | 911,766 |
| Working capital turnover | 2.07 | 3.24 | 2.62 | 2.88 | 4.82 |
June 30, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,146,330K ÷ ($3,505,600K – $1,019,120K)
= 2.07
The working capital turnover ratio of ResMed Inc., as provided, exhibits notable fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the ratio was 4.82 in 2021, indicating a relatively high level of sales generated per dollar of working capital during that year. Subsequently, there was a significant decline to 2.88 in 2022 and further to 2.62 in 2023, suggesting a decrease in operational efficiency in utilizing working capital to generate sales.
Following this downward trend, the ratio increased again to 3.24 in 2024, reflecting a partial recovery and improved utilization of working capital. However, it declined once more to 2.07 in 2025, which denotes a reduction in the efficiency of working capital use relative to sales.
Overall, the pattern reflects periods of decline and partial recovery after 2021, with the ratio demonstrating variability that may be attributable to changes in working capital management, sales cycles, or operational adjustments within the company. The fluctuations could also be influenced by external factors affecting sales volume or working capital components such as receivables, payables, and inventory. Further detailed analysis would be required to identify underlying drivers behind these changes.
Peer comparison
Jun 30, 2025