ResMed Inc (RMD)
Working capital turnover
Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 5,146,330 | 5,021,540 | 4,926,780 | 4,807,490 | 4,546,017 | 4,444,877 | 4,364,797 | 4,235,737 | 4,222,994 | 4,015,671 | 3,763,271 | 3,624,405 | 3,578,126 | 3,539,492 | 3,443,759 | 3,348,896 | 3,196,825 | 3,091,065 | 3,091,753 | 3,027,899 |
Total current assets | US$ in thousands | 3,505,600 | 3,208,420 | 2,836,180 | 2,641,120 | 2,357,720 | 2,351,300 | 2,378,080 | 2,304,580 | 2,367,830 | 2,337,820 | 2,325,160 | 2,033,700 | 1,931,480 | 1,704,300 | 1,547,240 | 1,586,260 | 1,574,760 | 1,466,150 | 1,451,480 | 1,542,610 |
Total current liabilities | US$ in thousands | 1,019,120 | 940,516 | 851,960 | 904,079 | 910,655 | 773,030 | 764,073 | 770,802 | 758,533 | 761,691 | 732,714 | 692,659 | 689,299 | 667,265 | 621,064 | 624,158 | 911,766 | 876,541 | 577,335 | 590,853 |
Working capital turnover | 2.07 | 2.21 | 2.48 | 2.77 | 3.14 | 2.82 | 2.70 | 2.76 | 2.62 | 2.55 | 2.36 | 2.70 | 2.88 | 3.41 | 3.72 | 3.48 | 4.82 | 5.24 | 3.54 | 3.18 |
June 30, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (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. over the specified period exhibits fluctuations, reflecting varying efficiency in utilizing working capital to generate sales. Starting from 3.18 as of September 30, 2020, the ratio increased steadily, reaching a peak of 5.24 on March 31, 2021. This indicates that during this period, ResMed was able to generate more sales per unit of working capital, suggesting improved operational efficiency.
Subsequently, the ratio declined somewhat but remained relatively high through the remainder of 2021, with values such as 4.82 (June 30, 2021) and 3.48 (September 30, 2021). This decrease suggests a deterioration in working capital utilization or possibly increased working capital relative to sales, which may imply operational adjustments or investments impacting efficiency.
Throughout 2022 and into 2023, the ratio continued a downward trend, reaching approximately 2.70 on September 30, 2022, and further declining to about 2.36 by December 31, 2022. It slightly recovered thereafter, with values such as 2.55 (March 31, 2023) and 2.62 (June 30, 2023). This overall decline indicates a reduction in the efficiency with which working capital is converted into sales.
From late 2023 through mid-2025, the ratio remained relatively stable with some upward movement, peaking at 3.14 on June 30, 2024, and settling around 2.07 as of June 30, 2025. The low levels approaching 2.07 suggest that the company's efficiency in leveraging working capital to generate sales has somewhat deteriorated over this period.
In summary, the data reflect an initial enhancement in working capital utilization during early 2021, followed by a gradual decline in efficiency, with some periods of partial recovery. The trend indicates that over time, ResMed has been less effective in converting working capital into sales, which could stem from changes in operational strategies, investment levels, or market conditions impacting the company's working capital management.
Peer comparison
Jun 30, 2025