ResMed Inc (RMD)

Current ratio

		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
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
Current ratio		2.59	3.04	3.11	2.99	3.12	3.07	3.17	2.94	2.80	2.55	2.49	2.54	1.73	1.67	2.51	2.61	2.53	2.66	2.60	2.11

June 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,357,720K ÷ $910,655K
= 2.59

The current ratio of ResMed Inc has fluctuated over the past few quarters, ranging from a low of 1.67 in March 2021 to a high of 3.17 in December 2022. The current ratio measures the company's ability to meet its short-term obligations with its current assets.

In general, a current ratio above 1 indicates that a company has more current assets than current liabilities, suggesting a stronger ability to cover short-term obligations. ResMed Inc's current ratio has generally been above 2, indicating a healthy liquidity position, with sufficient current assets to cover its current liabilities comfortably.

The current ratio peaked in December 2022 at 3.17, indicating a strong liquidity position at that point. However, in the most recent quarter (June 2024), the current ratio decreased to 2.59, which is still above the ideal benchmark of 2. This decrease may warrant further investigation to understand the factors contributing to the decline in liquidity.

Overall, ResMed Inc's current ratio reflects a generally sound liquidity position, with fluctuations observed over time that may require monitoring to ensure the company's ability to meet its short-term obligations remains strong.