ResMed Inc (RMD)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 59.36% | 56.67% | 55.78% | 56.57% | 57.53% |
| Operating profit margin | 32.79% | 28.17% | 26.80% | 27.96% | 28.27% |
| Pretax margin | 32.60% | 27.00% | 26.09% | 26.84% | 27.64% |
| Net profit margin | 27.22% | 21.79% | 21.25% | 21.78% | 14.84% |
The analysis of ResMed Inc.'s profitability ratios over the period from June 30, 2021, to June 30, 2025, indicates a generally positive trend, with some fluctuations observed across different metrics.
Gross profit margin experienced a slight decline from 57.53% in 2021 to 56.57% in 2022, followed by a further decrease to 55.78% in 2023. However, this margin recovered in 2024 to 56.67% and showed a notable increase in 2025 to 59.36%. Overall, the gross profit margin demonstrates resilience, with the most recent figure surpassing earlier levels, suggesting improvements in cost management or pricing strategies that have enhanced gross profitability.
The operating profit margin reflects a marginal downward trend from 28.27% in 2021 to 26.80% in 2023, indicating slight pressures on operating efficiency during this period. Nonetheless, a recovery is evident in 2024, with the margin rising to 28.17%, and a significant increase to 32.79% in 2025. This upward movement suggests enhanced operational efficiency or improved cost control measures that have positively contributed to operating profitability.
Pre-tax profit margin has followed a similar pattern, decreasing modestly from 27.64% in 2021 to 26.09% in 2023, then stabilizing and improving to 27.00% in 2024 and substantially increasing to 32.60% in 2025. The notable rise in 2025 reflects improvements in pre-tax profitability, potentially driven by better operational performance, lower expense ratios, or favorable tax considerations.
The net profit margin shows a more pronounced positive trend, increasing from 14.84% in 2021 to 21.78% in 2022, with a slight decline to 21.25% in 2023. In 2024, the margin slightly increased to 21.79%, and in 2025, it experienced a significant rise to 27.22%. This consistent upward trajectory indicates that ResMed has been effective in enhancing its bottom-line profits relative to revenue, possibly through improved cost controls, revenue growth, or both.
Overall, ResMed Inc. demonstrates a trajectory of strengthening profitability metrics, especially evident in the most recent year. The combined improvements in gross, operating, pre-tax, and net profit margins in 2025 highlight the company's ability to effectively manage costs and enhance revenue-generating capabilities, reflecting positively on its overall financial health and operational efficiency.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.64% | 19.21% | 16.76% | 19.63% | 19.11% |
| Return on assets (ROA) | 17.14% | 14.86% | 13.29% | 15.30% | 10.04% |
| Return on total capital | 28.11% | 27.08% | 28.14% | 29.24% | 31.62% |
| Return on equity (ROE) | 23.47% | 20.99% | 21.73% | 23.19% | 16.44% |
The profitability ratios of ResMed Inc. over the period from June 30, 2021, to June 30, 2025, exhibit several notable trends.
Operating Return on Assets (Operating ROA) initially increased from 19.11% in 2021 to 19.63% in 2022, indicating a marginal improvement in the efficiency of core operations relative to total assets. However, it experienced a decline in 2023 to 16.76%, suggesting a temporary decrease in operational efficiency or increased asset base not yet matched by proportional income. Subsequently, the ratio rebounded to 19.21% in 2024 and further increased to 20.64% in 2025, reflecting an overall recovery and enhancement in operating efficiency.
Return on Assets (ROA), which incorporates net income relative to total assets, shows a different pattern. It increased sharply from 10.04% in 2021 to 15.30% in 2022, indicating improved profitability per dollar of assets. This ratio then decreased slightly to 13.29% in 2023 but resumed an upward trend to 14.86% in 2024, and further to 17.14% in 2025. These movements suggest fluctuations in net profitability margins alongside asset utilization, but an overall positive trajectory in recent years.
Return on Total Capital demonstrates a consistent downward trend from 31.62% in 2021 to 29.24% in 2022 and further to 28.14% in 2023. The ratio continued to decline slightly in 2024 to 27.08% but rose again in 2025 to 28.11%. This indicates that while capital efficiency saw some compression initially, it improved slightly in the most recent year, reflecting controlled capital costs or better deployment of capital resources.
Return on Equity (ROE) experienced notable growth from 16.44% in 2021 to 23.19% in 2022, reflecting enhanced equity profitability, possibly driven by increased net income or optimized equity structure. It then declined marginally to 21.73% in 2023, followed by slight decreases in 2024 to 20.99%, before resuming an upward trend to 23.47% in 2025. This pattern demonstrates resilience and an overall positive trend in shareholder returns, especially toward the most recent fiscal period.
In sum, ResMed Inc.'s profitability ratios reveal a generally improving profitability environment over the analyzed period, marked by a recovery from 2023 lows and upward movements in key ratios during the most recent years, with some fluctuations reflecting operational and financial year-to-year variations.