ResMed Inc (RMD)
Return on total capital
| Jun 30, 2025 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,687,855 | 1,597,084 | 1,553,975 | 1,470,187 | 1,370,185 | 1,289,140 | 1,215,227 | 1,164,511 | 1,144,441 | 1,113,601 | 1,047,195 | 1,007,300 | 1,000,286 | 986,526 | 975,687 | 957,365 | 912,348 | 892,002 | 886,076 | 844,659 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,967,860 | 5,546,130 | 5,253,010 | 5,195,030 | 4,864,040 | 4,629,920 | 4,481,850 | 4,250,380 | 4,129,900 | 3,932,510 | 3,738,130 | 3,432,890 | 3,360,750 | 3,278,800 | 3,145,840 | 3,026,050 | 2,885,680 | 2,709,230 | 2,864,980 | 2,678,860 |
| Return on total capital | 28.28% | 28.80% | 29.58% | 28.30% | 28.17% | 27.84% | 27.11% | 27.40% | 27.71% | 28.32% | 28.01% | 29.34% | 29.76% | 30.09% | 31.02% | 31.64% | 31.62% | 32.92% | 30.93% | 31.53% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,687,855K ÷ ($—K + $5,967,860K)
= 28.28%
The analysis of ResMed Inc.'s return on total capital over the specified period reveals a generally stable profitability trend with slight fluctuations. Beginning at approximately 31.53% as of September 30, 2020, the metric experienced a gradual decline over the subsequent quarters, reaching a low of around 27.11% by December 31, 2023. This decline indicates a reduction in the company's efficiency in generating earnings relative to its total capital base over this timeframe.
However, starting from early 2024, a modest recovery is observed, with the return rising to approximately 29.58% by the end of December 2024. In 2025, the return fluctuated slightly but remained relatively stable, ending at around 28.28% as of June 30, 2025. These recent movements suggest a stabilization in the company's ability to leverage its total capital effectively, despite a prior downward trend.
Overall, the period reflects a slight but sustained decrease in return on total capital from its initial high levels, with periods of recovery indicating potential improvements in operational efficiency or capital management. The data suggests that while the company maintained a relatively consistent level of profitability concerning its total capital, there is an ongoing need to examine underlying factors influencing these performance shifts.
Peer comparison
Jun 30, 2025