ResMed (ResMed) Interest Coverage

: 24.58 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. ResMed's Operating Income for the three months ended in Dec. 2023 was $339 Mil. ResMed's Interest Expense for the three months ended in Dec. 2023 was $-14 Mil. ResMed's interest coverage for the quarter that ended in Dec. 2023 was 24.58. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for ResMed's Interest Coverage or its related term are showing as below:

RMD' s Interest Coverage Range Over the Past 10 Years
Min: 16.18 Med: 31.17 Max: 70.83
Current: 20.71

RMD's Interest Coverage is ranked better than
50.94% of 426 companies
in the Medical Devices & Instruments industry
Industry Median: 19.59 vs RMD: 20.71

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

ResMed Interest Coverage Historical Data

The historical data trend for ResMed's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

ResMed Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Interest Coverage

17.59

20.04

38.03

44.92

24.31

ResMed Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																27.92	20.09	19.16	19.32	24.58

Competitive Comparison

For the Medical Instruments & Supplies subindustry, ResMed's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Medical Devices & Instruments industry and Healthcare sector, ResMed's Interest Coverage distribution charts can be found below:

* The bar in red indicates where ResMed's Interest Coverage falls into.

ResMed Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

ResMed's Interest Coverage for the fiscal year that ended in Jun. 2023 is calculated as

Here, for the fiscal year that ended in Jun. 2023, ResMed's Interest Expense was $-47 Mil. Its Operating Income was $1,152 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,548 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2023 )	/	Interest Expense (A: Jun. 2023 )
	=	-1	*	1151.997	/	-47.379
	=	24.31

ResMed's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, ResMed's Interest Expense was $-14 Mil. Its Operating Income was $339 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,357 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	339.322	/	-13.805
	=	24.58

The higher the ratio, the stronger the company's Financial Strength is.

ResMed (NYSE:RMD) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

ResMed Interest Coverage Related Terms

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

ResMed (ResMed) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » ResMed Inc (NYSE:RMD) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

RSMDF:USA RMEA:Germany RME:Germany RMEA:Germany RME:Germany R1MD34:Brazil RMD:Australia

Address

9001 Spectrum Center Boulevard, San Diego, CA, USA, 92123

Website

https://www.resmed.com

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

Brett Sandercock	officer: Chief Financial Officer	17 GUINEVIERE COURT, CASTLE HILL, NEW SOUTH WALES C3 2154
Michael J. Farrell	officer: Chief Executive Officer	C/O REMED INC, 9001 SPECTRUM CTR. BLVD., SAN DIEGO, CA 92123
Michael J Rider	officer: Global General Counsel	9001 SPECTRUM CENTER BLVD, SAN DIEGO CA 92123
Robert Andrew Douglas	officer: President and COO	21 ATTUNGA ROAD, NEWPORT, NEW SOUTH WALES C3 2106
Kaushik Ghoshal	officer: President, SaaS Business	9001 SPECTRUM CENTER BLVD, SAN DIEGO CA 92123
David Pendarvis	officer: Chief Administration Officer	REDMED INC, 14040 DANLELSON ST, POWAY CA 92064
Karen Drexler	director	C/O DIADEXUS, INC., 343 OYSTER POINT BOULEVARD, SOUTH SAN FRANCISCO CA 94080
Justin Leong	officer: President, Asia and LATAM	C/O RESMED INC, 9001 SPECTRUM CENTER BLVD, SAN DIEGO CA 92123
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
Peter C Farrell	director	RESMED INC, 14040 DANIELSON STREET, POWAY CA 92064-6857
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
Resmed Inc	director	9001 SPECTRUM CENTER BLVD., SAN DIEGO CA 92123