ResMed Inc (RMD)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 1.41 | 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 |
Based on the solvency ratios provided for ResMed Inc, it is observed that the company has consistently maintained a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00 over the various periods analyzed. This indicates that the company has not relied on debt financing to fund its operations and growth, as its total debt is negligible in relation to its assets, capital, and equity.
However, the financial leverage ratio for ResMed Inc has shown some fluctuation over the periods, ranging from 1.41 to 2.00. The financial leverage ratio measures the company's level of financial risk and its ability to meet its financial obligations. The increasing trend in the financial leverage ratio over time indicates that the company's reliance on debt has been gradually rising, which could potentially increase its financial risk and impact its financial flexibility.
Overall, while ResMed Inc has shown strong solvency indicators with minimal debt obligations in relation to its assets, capital, and equity, the trend of increasing financial leverage ratio warrants careful monitoring to ensure the company's financial stability and risk management.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 28.88 | 22.18 | 19.43 | 20.74 | 23.89 | 29.28 | 36.63 | 41.77 | 44.58 | 43.89 | 42.85 | 41.96 | 37.84 | 32.11 | 27.20 | 23.11 | 19.16 | 15.10 | 13.19 | 13.21 |
The interest coverage ratio for ResMed Inc has shown a generally positive trend over the past two years, indicating the company's ability to meet its interest obligations comfortably. The ratio has consistently remained above 15, which is generally considered a healthy level.
Specifically, the interest coverage ratio has exhibited an increasing trend from 13.21 in the fourth quarter of 2019 to a peak of 44.58 in the third quarter of 2022. This upward trend suggests that ResMed's operating income has been sufficient to cover its interest expenses more than adequately.
Although there have been fluctuations in the interest coverage ratio over the quarters, the ratios have generally remained at comfortable levels, indicating that ResMed has been effectively managing its interest obligations. This stability and upward trend in the interest coverage ratio reflect positively on the company's financial health and ability to service its debt obligations.