ResMed Inc (RMD)

Return on equity (ROE)

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Net income US$ in thousands 1,400,720 1,020,950 897,556 779,437 474,505
Total stockholders’ equity US$ in thousands 5,967,860 4,864,040 4,129,900 3,360,750 2,885,680
ROE 23.47% 20.99% 21.73% 23.19% 16.44%

June 30, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,400,720K ÷ $5,967,860K
= 23.47%

The analysis of ResMed Inc.'s return on equity (ROE) over the period from June 30, 2021, to June 30, 2025, reveals notable fluctuations and trends that merit detailed consideration.

In fiscal year 2021, the company's ROE stood at 16.44%, indicating a moderate level of profitability generated for each dollar of equity invested. This figure increased significantly in the subsequent year, reaching 23.19% as of June 30, 2022. This upward movement suggests an improvement in the company's efficiency in converting shareholders' equity into net earnings, potentially driven by operational enhancements, revenue growth, or improved profit margins.

However, in the following year, there was a slight decline, with ROE dipping to 21.73% as of June 30, 2023. While still robust, this decrease may indicate some normalization after the previous year's peak or the impact of external factors affecting profitability.

The subsequent year displayed a marginal decrease again, with the ROE at 20.99% on June 30, 2024. This steady decline from the prior year's level could reflect slight pressures on profit margins, increased equity base, or other factors influencing net income relative to equity.

Looking forward, the projected ROE for June 30, 2025, is 23.47%, suggesting an anticipated resurgence in profitability and efficiency. This expected increase could be attributed to operational improvements, strategic initiatives, or market conditions favoring higher net earnings relative to shareholders' equity.

Overall, the ROE trend illustrates a pattern of growth from 2021 through 2022, a modest decline thereafter, with a forecasted recovery toward a higher level in 2025. The fluctuations underscore the importance of examining underlying drivers such as profit margins, asset efficiency, and capital structure to better understand the factors influencing ResMed's consolidated profitability over this period.