ResMed Inc (RMD)
Financial leverage ratio
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,174,390 | 6,872,390 | 6,751,710 | 5,095,850 | 4,728,120 |
| Total stockholders’ equity | US$ in thousands | 5,967,860 | 4,864,040 | 4,129,900 | 3,360,750 | 2,885,680 |
| Financial leverage ratio | 1.37 | 1.41 | 1.63 | 1.52 | 1.64 |
June 30, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,174,390K ÷ $5,967,860K
= 1.37
The financial leverage ratio of ResMed Inc. exhibits fluctuations over the five-year period from June 30, 2021, to June 30, 2025. At the end of fiscal year 2021, the ratio stood at 1.64, indicating a moderate level of debt in relation to shareholders' equity. This ratio subsequently declined to 1.52 by June 30, 2022, suggesting a slight reduction in leverage, potentially reflecting an effort to deleverage or repay debt, or changes in equity levels.
In fiscal year 2023, the ratio experienced a marginal increase to 1.63, nearing the levels observed in 2021. This indicates a return to a slightly higher leverage position, possibly due to additional borrowing or strategic financial structuring. However, a notable decline is observed in fiscal year 2024, with the ratio decreasing to 1.41, implying a reduction in financial leverage and a potentially more conservative debt management approach.
The downward trend continues into fiscal year 2025, where the ratio further declines to 1.37, signaling a gradual decrease in leverage levels. This consistent decline over the last two years may suggest a strategic emphasis on reducing financial risk, improving debt management, or increasing equity through retained earnings or share repurchases.
Overall, the company's financial leverage ratio demonstrates a pattern of initial moderate leverage, a brief period of increased leverage, followed by a consistent downward trend. This trend reflects a strategic shift toward lower reliance on debt, indicating an emphasis on financial stability and reduced leverage risk over the analyzed period.
Peer comparison
Jun 30, 2025