ResMed Inc (RMD)

Financial leverage ratio

		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
Total assets	US$ in thousands	6,872,390	6,814,560	6,905,090	6,740,790	6,751,710	6,713,880	6,676,100	5,177,560	5,095,850	4,905,260	4,734,740	4,729,170	4,728,120	4,585,720	4,572,860	4,620,840	4,587,380	4,510,540	4,353,940	4,154,560
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
Financial leverage ratio		1.41	1.47	1.54	1.59	1.63	1.71	1.79	1.51	1.52	1.50	1.51	1.56	1.64	1.69	1.60	1.72	1.84	2.00	1.93	1.96

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,872,390K ÷ $4,864,040K
= 1.41

The financial leverage ratio of ResMed Inc has been fluctuating over the past few quarters. The ratio, which indicates the company's level of debt relative to its equity, has generally been increasing, peaking at 2.00 in the first quarter of 2020 before gradually decreasing to 1.41 in June 2024. This downward trend indicates a decrease in the company's reliance on debt financing compared to equity.

However, it is worth noting that the financial leverage ratio has not been consistently decreasing, as there have been fluctuations in the ratio over the period under review. The ratio ranged from 1.41 to 1.79 between June 2022 and December 2022 before decreasing to 1.47 in March 2024 and further to 1.41 in June 2024.

Overall, while the company's financial leverage ratio has shown some volatility, the recent trend of decreasing ratios suggests a potentially decreasing risk associated with the company's capital structure. Nevertheless, it is essential for stakeholders to continue monitoring the company's leverage levels to ensure its long-term financial health.