ResMed Inc (RMD)

Return on total capital

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	1,319,890	1,131,870	1,000,290	907,651	773,465
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	4,864,040	4,129,900	3,360,750	2,885,680	2,497,030
Return on total capital		27.14%	27.41%	29.76%	31.45%	30.98%

June 30, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,319,890K ÷ ($—K + $4,864,040K)
= 27.14%

ResMed Inc's return on total capital has shown a slight decrease over the past five years, from 30.98% in 2020 to 27.14% in 2024. This downward trend could indicate challenges in generating returns relative to the total capital employed by the company. However, it is essential to consider the industry context and external factors that may have influenced these results. Further analysis of the company's financial performance and capital utilization strategies would be necessary to understand the reasons behind the fluctuations in return on total capital.