Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. ResMed's annualized net income for the quarter that ended in Dec. 2023 was $835 Mil. ResMed's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $983 Mil. Therefore, ResMed's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 84.93%.
The historical rank and industry rank for ResMed's Return-on-Tangible-Equity or its related term are showing as below:
RMD'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 25.48 Med: 70.62 Max: 172.66
Current: 119.12
During the past 13 years, ResMed's highest Return-on-Tangible-Equity was 172.66%. The lowest was 25.48%. And the median was 70.62%.
RMD's Return-on-Tangible-Equity is ranked better than 95.05% of 767
companies
in the Medical Devices & Instruments industry
Industry Median: 2.1
vs RMD: 119.12
ResMed Return-on-Tangible-Equity Historical Data
The historical data trend for ResMed's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of ResMed's Return-on-Tangible-Equity
For the Medical Instruments & Supplies subindustry, ResMed's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ResMed's Return-on-Tangible-Equity Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, ResMed's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where ResMed's Return-on-Tangible-Equity falls into.
ResMed Return-on-Tangible-Equity Calculation
ResMed's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jun. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
ResMed Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of ResMed's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
ResMed is one of the largest respiratory care device companies globally, primarily developing and supplying flow generators, masks and accessories for the treatment of sleep apnea. Increasing diagnosis of sleep apnea combined with ageing populations and increasing prevalence of obesity is resulting in a structurally growing market. The company earns roughly two thirds of its revenue in the Americas and the balance across other regions dominated by Europe, Japan and Australia. Recent developments and acquisitions have focused on digital health as ResMed is aiming to differentiate itself through the provision of clinical data for use by the patient, medical care advisor and payer in the out-of-hospital setting.
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