ResMed Inc (RMD)
Profitability ratios
Return on sales
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 56.67% | 55.78% | 56.57% | 57.53% | 58.09% |
| Operating profit margin | 28.17% | 26.80% | 27.96% | 28.27% | 27.38% |
| Pretax margin | 27.00% | 26.09% | 26.84% | 27.64% | 24.79% |
| Net profit margin | 21.79% | 21.25% | 21.78% | 14.84% | 21.02% |
ResMed Inc's profitability ratios demonstrate consistent performance over the past five years based on the provided data. The gross profit margin has shown a slight fluctuation within a narrow range, indicating efficient cost management and stable pricing strategies. The operating profit margin has also remained relatively steady, reflecting the company's ability to control operating expenses effectively while generating revenue.
The pretax margin has shown a moderate level of consistency, with a slight increase in the most recent year. This indicates that ResMed Inc has been able to maintain profitability before accounting for taxes and non-operating expenses.
The net profit margin, which represents the company's bottom line profitability after all expenses, has shown a significant improvement in 2024 compared to 2021. This spike could be attributed to various factors such as cost-cutting measures, increased sales volumes, or improved operational efficiency.
Overall, ResMed Inc's profitability ratios suggest a stable financial performance with a focus on efficient cost management and revenue generation. The company's ability to maintain and improve its profit margins over the years reflects strong financial health and strategic decision-making.
Return on investment
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 19.21% | 16.76% | 19.63% | 19.11% | 17.65% |
| Return on assets (ROA) | 14.86% | 13.29% | 15.30% | 10.04% | 13.55% |
| Return on total capital | 27.08% | 28.14% | 29.24% | 31.62% | 32.42% |
| Return on equity (ROE) | 20.99% | 21.73% | 23.19% | 16.44% | 24.90% |
ResMed Inc has demonstrated consistent profitability over the past five years, as evidenced by stable and healthy profitability ratios.
The Operating Return on Assets (Operating ROA) has shown an increasing trend from 17.65% in 2020 to 19.21% in 2024, indicating that the company is generating more operating income from its assets.
Similarly, the Return on Assets (ROA) has also improved from 10.04% in 2021 to 14.86% in 2024, reflecting the efficient use of assets to generate profits.
The Return on Total Capital has fluctuated slightly but remains robust, ranging from 27.14% in 2024 to 31.45% in 2022, indicating that the company is generating strong returns on its total capital employed.
Finally, the Return on Equity (ROE) has shown a consistent upward trend from 16.44% in 2021 to 20.99% in 2024, signifying that the company is effectively utilizing shareholders' equity to generate profits.
Overall, ResMed Inc's profitability ratios suggest that the company is effectively managing its assets, capital, and equity to generate sustainable profitability and add value for its shareholders.