ResMed Inc (RMD)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.36 | 1.36 | 1.39 | 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 |
The analysis of ResMed Inc.'s solvency ratios over the specified period reveals several notable trends and characteristics. Notably, the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio are all reported as zero across all examined dates from June 30, 2020, through March 31, 2025. This indicates that the company has maintained an extremely conservative capital structure, with no recorded debt relative to its assets, capital, or equity during this timeframe.
The persistent absence of debt implies that ResMed Inc. operates predominantly with equity financing, demonstrating a very low or nonexistent leverage profile. Consequently, the company's financial risk associated with leverage appears minimal. The absence of debt also suggests minimal interest obligations and reduced exposure to credit market fluctuations.
In contrast, the financial leverage ratio shows variability over the analyzed period. Starting at 1.84 on June 30, 2020, it declines to a low of 1.36 by March 31, 2025. Although this ratio fluctuates somewhat, the overall trend indicates a gradual reduction in leverage relative to equity, consistent with the absence of debt financing.
In summary, ResMed Inc. exhibits a very conservative or zero-debt capital structure throughout the period under review, reflected by zero ratios for debt-to-assets, debt-to-capital, and debt-to-equity. The declining financial leverage ratio further supports a strategic emphasis on internal funding or equity-based financing with minimal reliance on borrowed capital. This positioning suggests a low financial risk profile and a focus on maintaining strong equity foundations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 77.47 | 45.20 | 34.01 | 26.01 | 22.20 | 20.71 | 21.10 | 24.16 | 29.32 | 36.77 | 41.82 | 44.83 | 44.61 | 43.30 | 42.54 | 38.03 | 32.04 | 27.75 | 23.32 | 19.79 |
The analysis of ResMed Inc.'s interest coverage ratio over the specified period indicates a generally strong capacity to meet interest obligations, with notable fluctuations throughout the timeline. Starting from June 30, 2020, the interest coverage ratio was approximately 19.79, reflecting a solid buffer over interest expenses. This ratio then exhibited a consistent upward trend, reaching a peak of approximately 44.83 by June 30, 2022. During this uplift, the company's earnings before interest and taxes (EBIT) relative to interest expenses significantly improved, suggesting enhanced operational performance and profitability.
Following this peak, a gradual decline was observed, with the ratio decreasing to approximately 36.77 by December 31, 2022, and further down to around 21.10 by September 30, 2023. These decreases may indicate increased interest expenses, slight reduction in earnings, or a combination of both factors. Despite this decline, the ratio remained well above the generally acceptable threshold of 3 to 5, emphasizing the company's maintained ability to service its interest obligations comfortably.
In the subsequent period, projections and recent figures display an improving trend, with the ratio climbing again to approximately 45.20 by December 2024 and forecasted to reach approximately 77.47 by March 2025. These projections suggest an anticipated substantial strengthening in the company's interest coverage capacity, likely driven by expected earnings growth or reduced interest expenses.
Overall, the interest coverage ratio demonstrates that ResMed Inc. has maintained a robust financial position in terms of its ability to service interest payments over the analyzed period. The fluctuations reflect variations in profitability and interest expenses, but the trend indicates resilience and an ability to sustain operations under varying financial conditions. The forecasted increase further implies potential improvements in profitability or strategic financial management aimed at strengthening fiscal stability.