ResMed Inc (RMD)
Return on total capital
| 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 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,598,437 | 1,546,752 | 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 | 798,865 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 2,497,030 |
| Return on total capital | 28.82% | 29.45% | 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% | 31.99% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,598,437K ÷ ($—K + $5,546,130K)
= 28.82%
The analysis of ResMed Inc.'s return on total capital (ROTC) over the analyzed period reveals a generally stable yet modest declining trend from mid-2020 to late 2023, followed by some recent fluctuation toward a slightly increased level in 2024 and early 2025.
From June 30, 2020, to December 31, 2023, the ROTC exhibited a gradual decline, starting at approximately 31.99% and decreasing to about 27.11%. This represents a reduction of roughly 4.88 percentage points over this period, translating to a decline of approximately 15.2%. The decline appears relatively consistent, with minor fluctuations, suggesting slightly diminishing profitability in terms of total capital utilization during this timeframe.
Between March 31, 2024, and June 30, 2024, as well as September 30, 2024, the ROTC saw modest increases, rising from approximately 27.84% to 28.17% and then to 28.30%. A more noticeable uptick is observed by December 31, 2024, when the ROTC reaches approximately 29.45%. These data points indicate a potential reversal or stabilization of the declining trend observed earlier, with the return moving closer to levels observed in early 2020.
This pattern suggests that while the company's efficiency in generating returns from its total capital had been gradually declining over a multi-year period, recent data indicates signs of marginal improvement or stabilization. Factors that could influence such trends include operational efficiency, changes in capital structure, industry dynamics, or strategic adjustments.
Overall, the ROTC metrics reflect a dip from peak levels around 32%, with a protracted period of decline, but recent movements suggest a potential positive shift that warrants further observation to determine if this trend persists.
Peer comparison
Mar 31, 2025