ResMed Inc (RMD)
Profitability ratios
Return on sales
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 58.53% | 57.94% | 57.20% | 57.92% | 57.28% | 56.87% | 57.01% | 55.78% | 56.30% | 56.71% | 56.80% | 56.57% | 56.29% | 56.58% | 56.94% | 57.53% | 58.16% | 58.23% | 58.29% | 58.55% |
| Operating profit margin | 32.10% | 31.67% | 29.50% | 29.03% | 27.31% | 26.12% | 27.03% | 26.80% | 27.69% | 27.78% | 27.98% | 27.96% | 27.87% | 28.33% | 28.33% | 28.27% | 28.64% | 28.44% | 28.25% | 27.38% |
| Pretax margin | 31.41% | 31.16% | 28.62% | 27.82% | 26.63% | 25.15% | 26.25% | 26.09% | 26.47% | 26.57% | 26.58% | 26.84% | 27.17% | 27.68% | 27.67% | 27.64% | 27.71% | 26.85% | 26.37% | 24.79% |
| Net profit margin | 26.15% | 25.35% | 23.15% | 22.46% | 21.56% | 20.40% | 21.40% | 21.25% | 21.49% | 21.51% | 21.69% | 21.78% | 22.02% | 15.16% | 14.92% | 14.84% | 14.79% | 22.60% | 22.45% | 21.02% |
The profitability ratios of ResMed Inc., namely gross profit margin, operating profit margin, pretax margin, and net profit margin, exhibit a generally stable and gradually improving trend over the specified period from mid-2020 through early 2025.
Gross Profit Margin:
The gross profit margin has maintained a relatively consistent level, hovering between approximately 55.78% and 58.55%. Notably, it experienced minor fluctuations but demonstrated an upward trajectory toward the latter part of the period, reaching approximately 57.94% by the end of 2024 and continuing upward to approximately 58.53% in March 2025. This indicates that ResMed has managed to sustain or slightly enhance its gross profitability over time, reflecting efficient cost management and pricing strategies relative to its cost of goods sold.
Operating Profit Margin:
The operating margin demonstrated a modest decline from approximately 28.44% in December 2020 to a low of around 26.12% in December 2023. However, there was a significant recovery thereafter, with the margin rising to approximately 31.67% at the end of 2024 and reaching around 32.10% in March 2025. This pattern suggests periods of margin compression followed by a strong rebound, potentially reflecting operational efficiencies, cost control measures, or strategic adjustments that positively impacted operating profitability in recent quarters.
Pretax Margin:
Similar to the operating margin, the pretax profit margin experienced some variability but remained within the range of approximately 25.15% to 27.71%. After a dip to around 25.15% in December 2023, it showed a notable improvement, reaching roughly 31.41% by March 2025. This uplift indicates improved pre-tax profitability driven possibly by enhanced operating performance, tax efficiencies, or revenue growth.
Net Profit Margin:
The net profit margin was relatively stable through most of the period, generally fluctuating between around 14.79% and 22.60%. Significant variation occurred around 2021, possibly influenced by extraordinary items or operational factors, with a noticeable increase beginning in late 2023 and into 2024. By March 2025, the net margin reached approximately 26.15%, indicating a strengthening of bottom-line profitability, potentially driven by improved gross margins, operational efficiencies, or favorable tax conditions.
Summary:
Overall, ResMed Inc. has maintained consistent gross profit margins with slight upward movement in recent years, reflecting steady revenue generation relative to cost of goods sold. The operating and pretax margins show a pattern of temporary compression but demonstrate a strong recovery and upward trend in the most recent periods, indicating effective management and operational improvements. The net profit margin has benefited from these improvements, culminating in a notable increase at the end of the period. These trends collectively depict a resilient profitability profile with recent positive momentum in overall net profitability.
Return on investment
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 21.30% | 21.85% | 19.64% | 19.21% | 17.81% | 16.51% | 16.99% | 16.76% | 16.56% | 15.66% | 19.59% | 19.63% | 20.11% | 20.61% | 20.06% | 19.11% | 19.31% | 19.23% | 18.51% | 17.65% |
| Return on assets (ROA) | 17.36% | 17.49% | 15.41% | 14.86% | 14.06% | 12.89% | 13.45% | 13.29% | 12.85% | 12.12% | 15.19% | 15.30% | 15.89% | 11.02% | 10.57% | 10.04% | 9.97% | 15.28% | 14.71% | 13.55% |
| Return on total capital | 28.82% | 29.45% | 28.30% | 28.17% | 27.84% | 27.11% | 27.40% | 27.71% | 28.32% | 28.01% | 29.34% | 29.76% | 30.09% | 31.02% | 31.64% | 31.62% | 32.92% | 30.93% | 31.53% | 31.99% |
| Return on equity (ROE) | 23.68% | 23.77% | 21.42% | 20.99% | 20.70% | 19.87% | 21.33% | 21.73% | 21.94% | 21.65% | 22.90% | 23.19% | 23.77% | 16.59% | 16.51% | 16.44% | 16.88% | 24.39% | 25.38% | 24.90% |
The analysis of ResMed Inc.'s profitability ratios over the period covering fiscal years from mid-2020 through early 2025 reveals several key trends and insights into the company's operational performance.
Operating Return on Assets (Operating ROA):
The Operating ROA demonstrates a generally upward trajectory over the analyzed period. It started at 17.65% as of June 2020, reflecting the company's efficient use of assets to generate operating income. This ratio increased steadily, reaching peaks such as 20.61% in December 2021 and maintaining a relatively high level around 20-21% thereafter, with notable recovery after a dip to 15.66% in December 2022. Recent data indicate continued improvement, with the ratio rising to 21.85% by December 2024 and slightly softening to 21.30% in March 2025, signifying sustained or improving operating efficiency and effective asset utilization.
Return on Assets (ROA):
ROA, which measures net income generated per dollar of total assets, follows a similar upward trend from 13.55% in June 2020 to a peak of approximately 17.49% in December 2024. The ratios exhibit some fluctuations, notably a decline to 9.97% in March 2021, likely due to operational or market factors impacting net income temporarily. Post-2022, the ROA stabilizes and resumes growth, indicating improved net profitability and effective management of assets in generating bottom-line results.
Return on Total Capital:
This ratio remained relatively stable during the period, with fluctuations within a narrow range around 30-32%. It started at 31.99% in June 2020, with minor declines, and then hovered around the 27-29% range in subsequent periods. The recent data show a slight upward movement, reaching approximately 29.45% by December 2024, which suggests efficient utilization of both equity and debt capital, albeit with some periods of marginal decline possibly reflecting changes in capital structure or profitability.
Return on Equity (ROE):
ROE experienced notable variability across the observed timeline. It peaked at around 25.38% in September 2020, then declined to roughly 16.44% in June 2021, reflecting possible changes in net income, leverage, or shareholder equity. A recovery commenced by 2022, with ROE reaching approximately 23.77% in March 2022, and remained relatively stable around 21-23% thereafter. The recent upward trend, culminating at 23.68% in March 2025, indicates that the company has regained or maintained strong profitability relative to shareholder equity, supported potentially by improved net income and prudent leverage.
Overall Summary:
ResMed Inc.'s profitability ratios over the analyzed period depict a trajectory of steady recovery and growth, particularly from late 2021 onward. The Operating ROA and ROA reveal consistent improvements in operational efficiency and net profitability, respectively. The stability of the Return on Total Capital suggests effective capital utilization, while fluctuations in ROE illustrate the impact of net income fluctuations and capital structure changes on shareholder returns. Overall, the company's profitability performance demonstrates resilience and positive trends, positioning it well for sustainable growth in subsequent periods.