ResMed Inc (RMD)

Working capital turnover

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Revenue (ttm)	US$ in thousands	4,681,240	4,528,920	4,442,900	4,314,610	4,171,410	4,064,591	3,819,396	3,688,938	3,645,890	3,606,884	3,513,684	3,419,445	3,265,514	3,144,973	3,128,793	3,045,837	2,957,056	2,891,676	2,784,449	2,699,392
Total current assets	US$ in thousands	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	1,523,460	1,469,760	1,300,480	1,161,100
Total current liabilities	US$ in thousands	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	602,761	551,519	500,045	550,457
Working capital turnover		3.23	2.87	2.75	2.81	2.59	2.58	2.40	2.75	2.94	3.48	3.79	3.55	4.93	5.33	3.58	3.20	3.21	3.15	3.48	4.42

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,681,240K ÷ ($2,357,720K – $910,655K)
= 3.23

ResMed Inc's working capital turnover has fluctuated over the past several quarters, ranging from a low of 2.40 to a high of 5.33. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales. A higher ratio indicates that the company is able to generate more sales with less working capital, which is generally seen as a positive sign of operational efficiency.

In the most recent quarter, the working capital turnover was 3.23, indicating that ResMed generated $3.23 in sales for every dollar of working capital. While this ratio has improved compared to the previous quarter, it is important to consider the trend over multiple periods to get a clearer picture of the company's efficiency in utilizing its working capital.

Overall, ResMed's working capital turnover has shown some variability but has generally remained at healthy levels, suggesting efficient management of working capital to support its sales activities. It is important for the company to continue monitoring and managing its working capital effectively to ensure sustainable operational performance.