ResMed Inc (RMD)
Solvency ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.41 | 1.63 | 1.52 | 1.64 | 1.84 |
ResMed Inc has consistently maintained a very low level of indebtedness as indicated by its debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which stand at 0.00 for the past five years. This suggests that the company relies primarily on equity financing rather than debt to support its operations and expansion.
In terms of financial leverage, ResMed's financial leverage ratio has been declining over the years, from 1.84 in 2020 to 1.41 in 2024. This indicates that the company has been reducing its reliance on debt to finance its assets and operations, which is a positive sign for its solvency and financial stability.
Overall, ResMed Inc appears to have a strong solvency position with a conservative capital structure that minimizes financial risk and enhances its ability to weather economic downturns or unexpected challenges.
Coverage ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 28.82 | 24.53 | 44.05 | 38.03 | 20.05 |
The interest coverage ratio measures a company's ability to meet its interest obligations from its operating income. ResMed Inc's interest coverage has shown a strong increasing trend over the past five years, indicating the company's ability to comfortably cover its interest expenses.
As of June 30, 2024, ResMed Inc's interest coverage ratio stands at 28.88, which suggests that the company generated 28.88 times more operating income than required to cover its interest expenses for the period. This indicates a robust financial position and ability to service its debt obligations efficiently.
The highest interest coverage ratio was observed in June 30, 2022, at 44.83, indicating a peak in the company's ability to cover its interest expenses during that period. On the other hand, the lowest interest coverage ratio was noted in June 30, 2020, at 19.16, which still reflects a healthy coverage of interest expenses.
Overall, the consistently high interest coverage ratios demonstrate ResMed Inc's strong profitability and the ability to manage its debt obligations effectively across the years.