ResMed Inc (RMD)

Return on assets (ROA)

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
Net income (ttm) US$ in thousands 1,313,254 1,248,705 1,112,883 1,020,950 958,378 890,386 906,500 897,556 862,953 809,465 786,302 779,437 779,474 521,981 499,744 474,503 457,240 698,858 679,898 621,674
Total assets US$ in thousands 7,566,820 7,141,330 7,222,420 6,872,390 6,814,560 6,905,090 6,740,790 6,751,710 6,713,880 6,676,100 5,177,560 5,095,850 4,905,260 4,734,740 4,729,170 4,728,120 4,585,720 4,572,860 4,620,840 4,587,380
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%

March 31, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $1,313,254K ÷ $7,566,820K
= 17.36%

ResMed Inc’s return on assets (ROA) demonstrates notable fluctuations over the period from June 2020 through March 2025. Initially, the ROA was 13.55% as of June 2020, reflecting a solid level of profitability relative to the asset base. This percentage experienced steady growth through the subsequent quarters, reaching a peak of 15.28% by December 2020, and further climbing to 15.89% in March 2022. These increases suggest an improving efficiency in generating earnings from the company's total assets during this period.

However, the ROA subsequently declined, falling to 12.12% by December 2022. This downward trend coincided with a period of volatility, with the ROA registering slight recoveries and dips, indicating fluctuating operational performance or shifts in asset utilization efficiency. By March 2023, the ROA rose marginally to 12.85%, and continued to show modest improvements through September 2023 at 13.45%, reaching 14.06% in March 2024.

From March 2024 onward, there displays a pronounced upward trend in ROA, ultimately reaching 17.49% at the end of 2024. The increase indicates a significant enhancement in how effectively the company utilizes its assets to generate profit, perhaps driven by operational efficiencies or favorable market conditions. As of March 2025, the ROA remains high at 17.36%, suggesting sustained improvements in asset utilization and profitability.

Overall, the ROA trajectory reflects periods of growth interspersed with downturns, but predominantly indicates a trend towards higher efficiency and profitability in relation to the company's asset base in the most recent periods. The upward movement towards the end of the observed timeframe highlights an encouraging progression in core operational performance metrics.