ResMed Inc (RMD)

Cash ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cash and cash equivalents	US$ in thousands	238,361	227,891	273,710	295,278	463,156
Short-term investments	US$ in thousands	12,026	12,423	9,167	—	—
Total current liabilities	US$ in thousands	910,655	758,533	689,299	911,766	602,761
Cash ratio		0.27	0.32	0.41	0.32	0.77

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($238,361K + $12,026K) ÷ $910,655K
= 0.27

The cash ratio of ResMed Inc has shown a gradual decline over the past five years, decreasing from 0.77 in 2020 to 0.27 in 2024. This indicates a decreasing ability of the company to cover its short-term liabilities with its available cash and cash equivalents.

A cash ratio below 1 suggests that ResMed Inc may not have enough liquid assets to meet its current obligations if they were all to become due immediately. The downward trend in the cash ratio may indicate potential liquidity concerns or inefficiencies in managing cash resources.

It is important for ResMed Inc to closely monitor its cash position and liquidity management strategies to ensure it can meet its short-term financial obligations and maintain financial stability. Additional analysis of other liquidity ratios and cash flow metrics would provide a more comprehensive view of the company's overall liquidity position.