ResMed Inc (RMD)
Profitability ratios
Return on sales
| Jun 30, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 59.36% | 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% |
| Operating profit margin | 32.79% | 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% |
| Pretax margin | 32.60% | 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% |
| Net profit margin | 27.22% | 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% |
The analysis of ResMed Inc.'s profitability ratios over the period from September 2020 through June 2025 reveals several key insights into the company's financial performance and trends.
Gross Profit Margin:
The gross profit margin has demonstrated relative stability with a slight upward trend over the extended period, starting at approximately 58.29% in September 2020 and gradually increasing to 59.36% by June 2025. Despite minor fluctuations, the overall trajectory indicates that ResMed has maintained efficient management of cost of goods sold relative to sales, with margin levels hovering around the high 50s throughout the period. The recent increase towards the end of the forecast horizon suggests potential improvements in product profitability or cost control measures.
Operating Profit Margin:
The operating profit margin has generally exhibited a downward trend during the initial years, declining from approximately 28.25% in September 2020 to a low of 26.80% in June 2023. However, beginning in mid-2024, there is a marked rise, reaching 29.03% in June 2024 and climbing further to 32.79% by June 2025. This shift indicates an improvement in operating efficiency or the effect of strategic initiatives that have enhanced operating profitability. Prior to this uptick, the margins faced pressure, possibly due to increases in operating expenses or competitive factors.
Pretax Margin:
The pretax margin follows a pattern similar to the operating margin, maintaining a relatively stable level around 26.37% to 27.71% until March 2023. Similar to the operating margin, a significant upward movement begins in late 2024, rising from around 26.63% in March 2024 to approximately 32.60% in June 2025. This substantial improvement suggests enhanced pre-tax profitability, possibly driven by better cost management, revenue growth, or other financial efficiencies.
Net Profit Margin:
The net profit margin experiences more pronounced fluctuations over this period. It starts at 22.45% in September 2020, dips significantly to a low of around 14.79% in March 2021 and remains relatively subdued until the end of 2023. From the first quarter of 2024 onward, a positive trend emerges, with margins increasing steadily, culminating at approximately 27.22% in June 2025. The widening of the gap between gross profit margin and net profit margin over time indicates that ResMed managed to improve bottom-line profitability through operational efficiencies, cost controls, or favorable tax and interest expense management.
Summary:
Overall, ResMed's profitability ratios suggest a company that has been capable of maintaining strong gross margins, reflecting efficient cost of goods sold. While operating and pretax margins saw a period of compression early in the analyzed timeframe, notable recovery and growth are apparent starting in mid-2024, bolstering net profitability. This pattern indicates effective strategic and operational adjustments aligning to enhanced profitability in recent periods, with prospects for sustained performance improvements into 2025.
Return on investment
| Jun 30, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.64% | 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% |
| Return on assets (ROA) | 17.14% | 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% |
| Return on total capital | 28.28% | 28.80% | 29.58% | 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% |
| Return on equity (ROE) | 23.47% | 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% |
The analysis of ResMed Inc.'s profitability ratios over the specified periods reveals a generally positive performance with notable fluctuations across different metrics.
Operating Return on Assets (Operating ROA): This ratio indicates the company's efficiency in generating operating income from its assets. From September 2020 through June 2021, there was a steady upward trend, with the ratio increasing from 18.51% to 19.11%. The ratio peaked at 20.61% in December 2021, reflecting enhanced operational efficiency during this period. Subsequently, the ratio experienced a decline, reaching a low of 15.66% in December 2022. However, from early 2023 onward, there has been a consistent recovery, culminating in an estimated 21.85% in December 2024, and maintaining a robust level into mid-2025.
Return on Assets (ROA): This metric measures the company's overall efficiency in generating net income from its total assets. The period from September 2020 to December 2021 saw relatively stable, though modest, improvement, with ROA increasing from 14.71% to 11.02%. A sharp decline occurred afterwards, with the ratio falling to 12.12% by December 2022. Post-2022, there has been a gradual recovery, with the ROA reaching approximately 17.49% in December 2024, indicating improved profitability relative to total assets.
Return on Total Capital: This ratio assesses the company's ability to generate returns from all sources of capital employed. The figures from September 2020 to December 2021 indicate a high and stable return averaging around 31%. A slight decline commenced thereafter, with the ratio decreasing to approximately 28-29% by late 2022 and remaining within that range into early 2025. This stability suggests consistent management of capital efficiency over time, despite some fluctuation.
Return on Equity (ROE): Reflecting the profitability for shareholders, ROE experienced a notable decline from a peak of approximately 25.38% in September 2020 to a low of around 16.44% in June 2021. Following this, there was some recovery, with ROE fluctuating but generally trending upwards post-2023, reaching approximately 23.77% in December 2024. The variation indicates periods of profitability fluctuation potentially influenced by changes in net income, equity base, and external market factors.
In summary, ResMed Inc. exhibits underlying profitability that has experienced periods of fluctuation but demonstrates resilience and recovery in recent periods. The trends suggest efficient management of operations and capital, with improvements particularly noticeable from 2023 onward, culminating in strong profitability ratios into 2024 and early 2025.