ResMed Inc (RMD)

Cash ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cash and cash equivalents	US$ in thousands	1,209,450	238,361	227,891	273,710	295,278
Short-term investments	US$ in thousands	—	12,026	12,423	9,167	—
Total current liabilities	US$ in thousands	1,019,120	910,655	758,533	689,299	911,766
Cash ratio		1.19	0.27	0.32	0.41	0.32

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,209,450K + $—K) ÷ $1,019,120K
= 1.19

The cash ratio of ResMed Inc. over the period from June 30, 2021, to June 30, 2025, exhibits notable fluctuations. As of June 30, 2021, the cash ratio stood at 0.32, indicating that ResMed had cash and cash equivalents amounting to approximately 32% of its current liabilities. This ratio increased slightly to 0.41 by June 30, 2022, suggesting an improvement in the company's liquidity position relative to its short-term obligations. However, by June 30, 2023, the cash ratio reverted to 0.32, reflecting a stabilization or slight decline back to the earlier level. The ratio then decreased further to 0.27 on June 30, 2024, indicating a reduced cash cushion relative to current liabilities, which could imply a tightening of liquidity or increased reliance on other current assets or liabilities to meet short-term obligations.

A significant change is observed by June 30, 2025, where the cash ratio jumps to 1.19. This indicates that ResMed maintained cash and cash equivalents exceeding its current liabilities by 119%, representing a substantial liquidity buffer. Such a high cash ratio could suggest increased liquidity management, accumulation of cash reserves, or a shift in asset allocation strategy.

Overall, the trend demonstrates periods of fluctuations with a notable peak in 2025, implying a phase of enhanced liquidity relative to short-term liabilities. The earlier years show a relatively stable but moderate to low cash ratio, whereas the spike in 2025 indicates a potentially strategic move to secure greater liquidity or a response to specific operational or market conditions.