ResMed Inc (RMD)
Solvency ratios
| Jun 30, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 1.37 | 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 |
The analysis of ResMed Inc.'s solvency ratios based on the provided data reveals the following insights:
1. Debt-to-Assets Ratio: Throughout the entire period under review—spanning from September 2020 to June 2025—ResMed's debt-to-assets ratio consistently remains at zero. This indicates that the company has not reported any debt relative to its total assets, implying a negligible or non-existent debt level, and suggesting complete reliance on equity financing.
2. Debt-to-Capital Ratio: Mirroring the pattern observed in the debt-to-assets ratio, the debt-to-capital ratio remains at zero across all time points. Consequently, the capital structure of ResMed appears to be entirely financed through equity, with no utilization of debt capital.
3. Debt-to-Equity Ratio: Consistent with the previous ratios, the debt-to-equity ratio is recorded as zero throughout the period. This indicates an absence of debt relative to shareholders’ equity, confirming the company's entirely equity-funded capital structure.
4. Financial Leverage Ratio: This ratio, which measures the proportion of a company’s total assets financed by debt, shows values greater than 1.0 in all periods—ranging from 1.36 to 1.72. These values suggest that ResMed maintains a leverage position where total assets are financed partly through equity and partly through debt, with a tendency towards moderate leverage. The ratio demonstrated a decreasing trend over time—from 1.72 in September 2020 down to approximately 1.36 in the latest periods—indicating a gradual reduction in leverage.
Summary:
ResMed Inc.’s solvency position, as reflected by the ratios, is characterized by zero reported debt ratios, indicating no leverage or debt obligations during the entire period. Nonetheless, the financial leverage ratio exceeding 1.0 suggests that the company’s total assets are financed with a mixture of equity and debt, with a progressively diminishing reliance on leverage over time. This combination points to a conservative financial structure, with the company potentially preferring equity financing and maintaining no significant debt exposure.
Coverage ratios
| Jun 30, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 100.23 | 77.40 | 45.42 | 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 |
The interest coverage ratio of ResMed Inc. demonstrates a generally strong capacity to meet interest obligations over the observed period. Starting from a high level of 23.32 as of September 30, 2020, the ratio experienced a consistent upward trend, reaching a peak of approximately 44.83 by June 30, 2022. This indicates that the company's earnings before interest and taxes (EBIT) sufficiently covered interest expenses more than 44 times during this period, reflecting robust financial health and low risk associated with debt servicing.
Subsequently, the ratio showed a gradual decline, dropping to 36.77 by the end of 2022 and further decreasing to 29.32 by the first quarter of 2023. Despite this decrease, the ratio remained well above the generally acceptable threshold of 3 to 4, indicating that ResMed continued to comfortably cover its interest payments. From March 2023 onward, the interest coverage dipped further to approximately 21.10 in September 2023, and then marginally improved to 20.71 by the end of 2023.
Forecasted figures suggest an increasing trend in the near future, with projections of the ratio rising to 22.20 in March 2024, 26.01 by June 2024, and reaching 34.01 in September 2024. The strongest forecasted values include 45.42 in December 2024, and notably, significant growth is projected into 2025, with ratios of 77.40 in March and 100.23 by June. Such projections indicate a very high capacity to meet interest obligations, suggesting optimism regarding the company's future earnings potential and a prudent leverage position.
Overall, the historical and forecasted interest coverage ratios of ResMed Inc. imply a stable and resilient financial profile, with ample earnings to comfortably service interest expenses even during periods of downward trend. The trend from 2020 through 2025 reflects both a strong historical performance and positive expectations for continued financial stability.