ResMed Inc (RMD)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 56.72% | 56.46% | 55.87% | 55.97% | 56.47% | 55.62% | 55.88% | 55.81% | 55.52% | 55.24% | 55.46% | 55.76% | 56.32% | 57.16% | 57.54% | 57.94% | 58.09% | 57.78% | 57.54% | 57.40% |
| Operating profit margin | 28.20% | 26.80% | 25.66% | 26.54% | 27.13% | 27.36% | 27.38% | 27.49% | 27.44% | 27.35% | 27.77% | 27.74% | 27.67% | 28.15% | 28.11% | 28.09% | 27.38% | 24.47% | 23.23% | 22.46% |
| Pretax margin | 27.02% | 26.14% | 24.71% | 25.77% | 26.41% | 26.15% | 26.18% | 26.12% | 26.34% | 26.66% | 27.13% | 27.10% | 27.06% | 27.24% | 26.53% | 26.21% | 24.79% | 21.33% | 20.22% | 19.65% |
| Net profit margin | 21.81% | 21.16% | 20.04% | 21.01% | 21.52% | 21.23% | 21.19% | 21.32% | 21.38% | 21.61% | 14.86% | 14.61% | 14.53% | 14.54% | 22.34% | 22.32% | 21.02% | 17.73% | 16.34% | 15.52% |
ResMed Inc's profitability ratios have shown a consistent trend over the past few quarters. The gross profit margin has averaged around the mid-50% range, indicating a stable level of profitability in generating revenues after accounting for the cost of goods sold.
The operating profit margin has also been fairly steady, hovering around the high 20% range. This suggests that ResMed has been effective in managing its operating expenses relative to its revenue, leading to a healthy level of profitability from its core business operations.
The pretax margin has been relatively consistent, reflecting ResMed's ability to generate earnings before accounting for taxes. This metric provides insight into the company's overall profitability potential before the impact of tax expenses.
The net profit margin, which measures the company's bottom line profitability after all expenses, has exhibited some variation, particularly in the most recent quarters. However, the overall trend shows a generally healthy level of net profitability, with the margins averaging in the low 20% range.
Overall, ResMed Inc's profitability ratios demonstrate a consistent performance in terms of generating profits from its operations, although some fluctuations in net profit margin warrant further analysis to understand the underlying factors influencing profitability.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 15.69% | 14.86% | 14.59% |
| Return on assets (ROA) | 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% | 11.37% | 10.45% | 10.09% |
| Return on total capital | 27.14% | 26.22% | 25.44% | 26.94% | 27.41% | 28.28% | 27.90% | 29.31% | 29.59% | 30.01% | 31.03% | 31.37% | 31.45% | 32.63% | 30.08% | 31.15% | 30.98% | 29.27% | 26.98% | 27.11% |
| Return on equity (ROE) | 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% | 22.72% | 20.15% | 19.79% |
ResMed Inc's profitability ratios exhibit a generally positive trend over the periods analyzed.
Starting with the Operating Return on Assets (Operating ROA), we see consistent improvement, indicating the company's ability to generate operating profits from its assets. The ratio increased from around 15.66% in December 2022 to 19.21% in June 2024, showcasing efficient asset utilization and management.
The Return on Assets (ROA) also demonstrates a positive growth trajectory, with a steady increase over time, highlighting the company's ability to generate earnings relative to its total assets. From 8.51% in December 2020, the ROA reached 14.86% in June 2024, indicating improved profitability and asset efficiency.
The Return on Total Capital and Return on Equity (ROE) ratios both display an upward trend, indicating strong performance in utilizing both debt and equity capital. The Return on Total Capital increased from 27.14% in September 2019 to 31.37% in March 2022 and slightly decreased to 26.98% by September 2019.
Similarly, the Return on Equity (ROE) improved from 16.44% in December 2020 to 20.99% in June 2024, demonstrating enhanced profitability for equity investors over the periods analyzed.
Overall, ResMed Inc's profitability ratios reflect a consistent pattern of growth and efficiency in generating profits in relation to assets, capital, and equity, showcasing the company's strong financial performance.