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 | 1,317,330 | 1,162,280 | 982,795 | 912,351 | 809,659 |
| 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 | 27.08% | 28.14% | 29.24% | 31.62% | 32.42% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,317,330K ÷ ($—K + $4,864,040K)
= 27.08%
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.
Peer comparison
Jun 30, 2024