ResMed Inc (RMD)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,677,570 | 1,317,330 | 1,162,280 | 982,795 | 912,351 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,967,860 | 4,864,040 | 4,129,900 | 3,360,750 | 2,885,680 |
| Return on total capital | 28.11% | 27.08% | 28.14% | 29.24% | 31.62% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,677,570K ÷ ($—K + $5,967,860K)
= 28.11%
The analysis of ResMed Inc.'s return on total capital over the specified period indicates a generally stable yet gradually declining trend. On June 30, 2021, the return on total capital stood at 31.62%, reflecting a strong ability to generate earnings from the total capital employed. By June 30, 2022, this ratio decreased to 29.24%, suggesting a slight reduction in efficiency, possibly due to increased capital deployment or diminished profitability margins. The decline continued through June 30, 2023, with the ratio reaching 28.14%, further indicating a modest reduction in overall capital utilization effectiveness.
In the subsequent year, June 30, 2024, the return declined slightly to 27.08%, continuing the downward trajectory but at a relatively gradual pace. However, by June 30, 2025, the ratio experienced a marginal recovery to 28.11%, reflecting a potential improvement in operational performance or capital management strategies. Overall, the trend demonstrates a slight decline in ResMed Inc.’s ability to generate returns from its total capital over the four-year span, although the ratios remain relatively high and indicate sustained profitability and efficient use of capital resources despite the small fluctuations.
Peer comparison
Jun 30, 2025