ResMed Inc (RMD)

Return on total capital

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,319,891	1,213,944	1,140,031	1,145,131	1,131,873	1,112,001	1,043,111	1,006,151	994,560	984,022	976,069	949,219	907,650	884,082	861,877	834,465	773,465	660,487	609,206	573,994
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	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	2,497,030	2,256,430	2,258,110	2,117,250
Return on total capital		27.14%	26.22%	25.44%	26.94%	27.41%	28.28%	27.90%	29.31%	29.59%	30.01%	31.03%	31.37%	31.45%	32.63%	30.08%	31.15%	30.98%	29.27%	26.98%	27.11%

June 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,319,891K ÷ ($—K + $4,864,040K)
= 27.14%

Over the past few quarters, ResMed Inc has maintained a steady and strong return on total capital, ranging between 25.44% and 32.63%. This indicates the company's ability to generate profits from its total capital employed, reflecting efficient management of both debt and equity financing. The increasing trend of return on total capital over the periods suggests improving operational efficiency and effective utilization of resources. Investors and stakeholders may view this positively as it signifies a consistent and attractive return on investment in the company. It is worth noting that the return on total capital peaked at 32.63% in the first quarter of 2021 before slightly declining in subsequent quarters but remaining at healthy levels above 25%.