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ResMed (BSP:R1MD34) ROA % : 17.91% (As of Sep. 2024)


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What is ResMed ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. ResMed's annualized Net Income for the quarter that ended in Sep. 2024 was R$6,897 Mil. ResMed's average Total Assets over the quarter that ended in Sep. 2024 was R$38,506 Mil. Therefore, ResMed's annualized ROA % for the quarter that ended in Sep. 2024 was 17.91%.

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

BSP:R1MD34' s ROA % Range Over the Past 10 Years
Min: 9.66   Med: 13.63   Max: 16.1
Current: 16.1

During the past 13 years, ResMed's highest ROA % was 16.10%. The lowest was 9.66%. And the median was 13.63%.

BSP:R1MD34's ROA % is ranked better than
96.2% of 868 companies
in the Medical Devices & Instruments industry
Industry Median: -2.04 vs BSP:R1MD34: 16.10

ResMed ROA % Historical Data

The historical data trend for ResMed's ROA % 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 ROA % Chart

ResMed Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.27 10.03 15.90 14.90 15.76

ResMed Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROA % 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 13.12 12.19 17.66 17.75 17.91

Competitive Comparison of ResMed's ROA %

For the Medical Instruments & Supplies subindustry, ResMed's ROA %, along with its competitors' market caps and ROA % 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 ROA % Distribution in the Medical Devices & Instruments Industry

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

* The bar in red indicates where ResMed's ROA % falls into.



ResMed ROA % Calculation

ResMed's annualized ROA % for the fiscal year that ended in Jun. 2024 is calculated as:

ROA %=Net Income (A: Jun. 2024 )/( (Total Assets (A: Jun. 2023 )+Total Assets (A: Jun. 2024 ))/ count )
=5498.944/( (32770.765+37015.401)/ 2 )
=5498.944/34893.083
=15.76 %

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

ROA %=Net Income (Q: Sep. 2024 )/( (Total Assets (Q: Jun. 2024 )+Total Assets (Q: Sep. 2024 ))/ count )
=6896.888/( (37015.401+39996.301)/ 2 )
=6896.888/38505.851
=17.91 %

* 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Sep. 2024) net income data. ROA % is displayed in the 30-year financial page.


ResMed  (BSP:R1MD34) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Sep. 2024 )
=Net Income/Total Assets
=6896.888/38505.851
=(Net Income / Revenue)*(Revenue / Total Assets)
=(6896.888 / 27124.344)*(27124.344 / 38505.851)
=Net Margin %*Asset Turnover
=25.43 %*0.7044
=17.91 %

Note: The Net Income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


ResMed ROA % Related Terms

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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.

ResMed Headlines

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