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RMD (ResMed) EBIT : $1,409 Mil (TTM As of Sep. 2024)


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What is ResMed EBIT?

ResMed's earnings before interest and taxes (EBIT) for the three months ended in Sep. 2024 was $387 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2024 was $1,409 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. ResMed's annualized ROC % for the quarter that ended in Sep. 2024 was 20.96%. ResMed's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 77.29%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. ResMed's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 3.86%.


ResMed EBIT Historical Data

The historical data trend for ResMed's EBIT 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.

* Premium members only.

ResMed EBIT Chart

ResMed Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 809.06 912.35 982.80 1,149.04 1,310.51

ResMed Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 289.00 339.32 374.58 307.60 387.31

Competitive Comparison of ResMed's EBIT

For the Medical Instruments & Supplies subindustry, ResMed's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, ResMed's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where ResMed's EV-to-EBIT falls into.



ResMed EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,409 Mil.

* 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.


ResMed  (NYSE:RMD) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

ResMed's annualized ROC % for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=1549.248 * ( 1 - 18.81% )/( (5915.764 + 6087.339)/ 2 )
=1257.8344512/6001.5515
=20.96 %

where

Invested Capital(Q: Jun. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6872.394 - 718.269 - ( 238.361 - max(0, 910.655 - 2357.719+238.361))
=5915.764

Invested Capital(Q: Sep. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=7222.417 - 708.717 - ( 426.361 - max(0, 904.079 - 2641.125+426.361))
=6087.339

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

ResMed's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1549.248/( ( (699.146 + max(1243.881, 0)) + (717.279 + max(1348.859, 0)) )/ 2 )
=1549.248/( ( 1943.027 + 2066.138 )/ 2 )
=1549.248/2004.5825
=77.29 %

where Working Capital is:

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(837.275 + 822.25 + 459.833) - (718.269 + 152.554 + 4.654)
=1243.881

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(811.198 + 917.982 + 485.584) - (708.717 + 157.188 + 0)
=1348.859

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

ResMed's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Sep. 2024 )
=1408.819/36492.329
=3.86 %

* 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.


ResMed EBIT Related Terms

Thank you for viewing the detailed overview of ResMed's EBIT provided by GuruFocus.com. Please click on the following links to see related term pages.


ResMed Business Description

Address
9001 Spectrum Center Boulevard, San Diego, CA, USA, 92123
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.
Executives
Peter C Farrell director RESMED INC, 14040 DANIELSON STREET, POWAY CA 92064-6857
Michael J Rider officer: Global General Counsel 9001 SPECTRUM CENTER BLVD, SAN DIEGO CA 92123
Michael J. Farrell officer: Chief Executive Officer C/O REMED INC, 9001 SPECTRUM CTR. BLVD., SAN DIEGO, CA 92123
Justin Leong officer: President, Asia and LATAM C/O RESMED INC, 9001 SPECTRUM CENTER BLVD, SAN DIEGO CA 92123
Witte Jan De director C/O RESMED INC., 9001 SPECTRUM CENTER BLVD., SAN DIEGO CA 92123
Brett Sandercock officer: Chief Financial Officer 17 GUINEVIERE COURT, CASTLE HILL, NEW SOUTH WALES C3 2154
Kaushik Ghoshal officer: President, SaaS Business 9001 SPECTRUM CENTER BLVD, SAN DIEGO CA 92123
Karen Drexler director C/O DIADEXUS, INC., 343 OYSTER POINT BOULEVARD, SOUTH SAN FRANCISCO CA 94080
Robert Andrew Douglas officer: President and COO 21 ATTUNGA ROAD, NEWPORT, NEW SOUTH WALES C3 2106
David Pendarvis officer: Chief Administration Officer REDMED INC, 14040 DANLELSON ST, POWAY CA 92064
Desney Tan director 9001 SPECTRUM CENTER BLVD, SAN DIEGO CA 92123
John Hernandez director 9001 SPECTRUM CENTER BLVD., SAN DIEGO CA 92123
Lucile Blaise officer: President, Sleep & RC Business RESMED INC., 9001 SPECTRUM CENTER BLVD., SAN DIEGO CA 92123
James Hollingshead officer: President, Sleep Business C/O RESMED INC., 9001 SPECTRUM CENTER BOULEVARD, SAN DIEGO CA 92123
Carol Burt director C/O WELLCARE HEALTH PLANS, INC., 8725 HENDERSON ROAD, TAMPA FL 33634