ResMed Inc. (RMD) Financial Ratios
30 years of historical data (1996–2025) · Healthcare · Medical - Instruments & Supplies
EV/EBITDA
↓
15.51
↓-37% vs avg
5yr avg: 24.69
30Y Low13.0·High52.3
P/FCF
↓
18.14
↓-72% vs avg
5yr avg: 63.73
30Y Low14.5·High158.0
P/B Ratio
↓
5.11
↓-39% vs avg
5yr avg: 8.33
30Y Low2.6·High16.9
ROE
↑
25.9%
↓+12% vs avg
5yr avg: 23.0%
30Y Low8%·High27%
Debt/EBITDA
↓
0.44
↓-40% vs avg
5yr avg: 0.74
30Y Low0.0·High4.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
RMD Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
ResMed Inc. trades at 21.8x earnings, 47% below its 5-year average of 41.3x, sitting at the 17th percentile of its historical range. This is roughly in line with the Healthcare sector median P/E of 22.3x. On a free-cash-flow basis, the stock trades at 18.1x P/FCF, 72% below the 5-year average of 63.7x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $30.1B | $38.0B | $28.2B | $32.2B | $30.8B | $36.1B | $28.0B | $17.6B | $14.9B | $11.1B | $9.0B |
| Enterprise Value | $29.8B | $37.7B | $28.9B | $33.6B | $31.5B | $36.6B | $28.8B | $18.8B | $15.0B | $11.3B | $9.4B |
| P/E Ratio → | 21.76 | 27.13 | 27.66 | 35.88 | 39.55 | 76.09 | 44.96 | 43.58 | 47.30 | 32.45 | 25.39 |
| P/S Ratio | 5.86 | 7.39 | 6.03 | 7.63 | 8.61 | 11.29 | 9.46 | 6.76 | 6.37 | 5.37 | 4.87 |
| P/B Ratio | 5.11 | 6.37 | 5.81 | 7.80 | 9.17 | 12.51 | 11.20 | 8.51 | 7.24 | 5.66 | 5.29 |
| P/FCF | 18.14 | 22.88 | 21.96 | 57.61 | 157.99 | 58.24 | 40.16 | 46.19 | 34.40 | 32.38 | 18.66 |
| P/OCF | 17.21 | 21.70 | 20.16 | 46.47 | 87.78 | 49.01 | 34.86 | 38.41 | 29.53 | 26.79 | 16.35 |
P/E links to full P/E history page with 30-year chart
RMD EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
ResMed Inc.'s enterprise value stands at 15.5x EBITDA, 37% below its 5-year average of 24.7x. The Healthcare sector median is 14.4x, placing the stock at a 8% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 7.32 | 6.16 | 7.95 | 8.79 | 11.45 | 9.74 | 7.20 | 6.41 | 5.49 | 5.11 |
| EV / EBITDA | 15.51 | 19.60 | 18.80 | 25.27 | 26.35 | 33.42 | 29.06 | 25.69 | 22.68 | 21.10 | 18.22 |
| EV / EBIT | 17.68 | 22.45 | 22.04 | 28.88 | 32.02 | 40.12 | 35.60 | 33.79 | 26.79 | 24.85 | 21.56 |
| EV / FCF | — | 22.66 | 22.45 | 60.02 | 161.28 | 59.05 | 41.36 | 49.13 | 34.61 | 33.13 | 19.58 |
RMD Profitability
Margins and return-on-capital ratios measuring operating efficiency
ResMed Inc. earns an operating margin of 32.7%. Operating margins have expanded from 26.8% to 32.7% over the past 3 years, signaling improving operational efficiency. ROE of 25.9% indicates solid capital efficiency. ROIC of 22.8% represents excellent returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 59.4% | 59.4% | 56.7% | 55.8% | 56.6% | 57.5% | 58.1% | 59.0% | 58.2% | 58.1% | 58.0% |
| Operating Margin | 32.7% | 32.7% | 28.2% | 26.8% | 28.0% | 28.3% | 27.4% | 22.2% | 23.2% | 20.6% | 23.3% |
| Net Profit Margin | 27.2% | 27.2% | 21.8% | 21.3% | 21.8% | 14.8% | 21.0% | 15.5% | 13.5% | 16.6% | 19.2% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 25.9% | 25.9% | 22.7% | 24.0% | 25.0% | 17.6% | 27.2% | 19.6% | 15.7% | 18.7% | 21.5% |
| ROA | 18.6% | 18.6% | 15.0% | 15.2% | 15.9% | 10.2% | 14.3% | 11.3% | 9.7% | 10.2% | 13.0% |
| ROIC | 22.8% | 22.8% | 18.0% | 17.9% | 20.3% | 20.2% | 18.6% | 16.2% | 18.6% | 14.7% | 19.5% |
| ROCE | 25.7% | 25.7% | 22.1% | 21.8% | 24.3% | 23.2% | 21.5% | 19.0% | 19.1% | 14.9% | 18.9% |
RMD Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
ResMed Inc. carries a Debt/EBITDA ratio of 0.4x, which is very conservative (87% below the sector average of 3.3x). The company holds a net cash position — cash of $1.2B exceeds total debt of $852M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 133.0x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.14 | 0.14 | 0.18 | 0.38 | 0.27 | 0.28 | 0.52 | 0.61 | 0.14 | 0.55 | 0.69 |
| Debt / EBITDA | 0.44 | 0.44 | 0.57 | 1.19 | 0.77 | 0.72 | 1.31 | 1.74 | 0.43 | 2.01 | 2.27 |
| Net Debt / Equity | — | -0.06 | 0.13 | 0.33 | 0.19 | 0.17 | 0.33 | 0.54 | 0.05 | 0.13 | 0.26 |
| Net Debt / EBITDA | -0.19 | -0.19 | 0.41 | 1.02 | 0.54 | 0.46 | 0.84 | 1.54 | 0.14 | 0.48 | 0.86 |
| Debt / FCF | — | -0.22 | 0.49 | 2.42 | 3.30 | 0.80 | 1.20 | 2.94 | 0.21 | 0.75 | 0.92 |
| Interest Coverage | 133.05 | 133.05 | 28.67 | 24.53 | 44.05 | 38.03 | 20.04 | 15.35 | 19.76 | 16.18 | 38.90 |
Net cash position: cash ($1.2B) exceeds total debt ($852M)
RMD Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
ResMed Inc.'s current ratio of 3.44x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 2.53x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 3.12x to 3.44x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.44 | 3.44 | 2.59 | 3.12 | 2.80 | 1.73 | 2.53 | 2.06 | 2.08 | 4.57 | 2.23 |
| Quick Ratio | 2.53 | 2.53 | 1.69 | 1.81 | 1.72 | 1.23 | 1.84 | 1.43 | 1.56 | 3.82 | 1.87 |
| Cash Ratio | 1.19 | 1.19 | 0.26 | 0.30 | 0.40 | 0.32 | 0.77 | 0.26 | 0.37 | 2.28 | 1.15 |
| Asset Turnover | — | 0.63 | 0.68 | 0.63 | 0.70 | 0.68 | 0.64 | 0.63 | 0.76 | 0.60 | 0.56 |
| Inventory Turnover | 2.25 | 2.25 | 2.47 | 1.87 | 2.09 | 2.97 | 2.97 | 3.06 | 3.64 | 3.22 | 3.44 |
| Days Sales Outstanding | — | 70.26 | 65.23 | 60.93 | 58.75 | 70.14 | 58.59 | 74.00 | 75.44 | 79.57 | 75.85 |
RMD Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
ResMed Inc. returns 2.0% to shareholders annually — split between a 1.0% dividend yield and 1.0% buyback yield. The payout ratio of 22.2% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 4.6% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.0% | 0.8% | 1.0% | 0.8% | 0.8% | 0.6% | 0.8% | 1.2% | 1.3% | 1.7% | 1.9% |
| Payout Ratio | 22.2% | 22.2% | 27.7% | 28.8% | 31.5% | 47.8% | 36.2% | 52.3% | 63.2% | 54.4% | 47.7% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.6% | 3.7% | 3.6% | 2.8% | 2.5% | 1.3% | 2.2% | 2.3% | 2.1% | 3.1% | 3.9% |
| FCF Yield | 5.5% | 4.4% | 4.6% | 1.7% | 0.6% | 1.7% | 2.5% | 2.2% | 2.9% | 3.1% | 5.4% |
| Buyback Yield | 1.0% | 0.8% | 0.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.4% | 0.0% | 1.1% |
| Total Shareholder Yield | 2.0% | 1.6% | 1.5% | 0.8% | 0.8% | 0.6% | 0.8% | 1.3% | 1.7% | 1.7% | 3.0% |
| Shares Outstanding | — | $147M | $148M | $147M | $147M | $146M | $146M | $144M | $144M | $142M | $142M |
Peer Comparison
Compare RMD with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 RMDYou | $30B | 21.8 | 15.5 | 18.1 | 59.4% | 32.7% | 25.9% | 22.8% | 0.4 |
 PHG | $26B | 24.9 | 10.7 | 24.6 | 45.2% | 8.0% | 7.8% | 6.4% | 3.2 |
 ITGR | $3B | 30.4 | 13.1 | 28.8 | 23.1% | 11.3% | 6.1% | 5.4% | 4.2 |
 NVCR | $2B | -13.8 | — | — | 74.5% | -23.5% | -38.9% | -16.4% | — |
 INSP | $1B | 9.3 | 19.1 | 16.7 | 85.4% | 5.6% | 19.8% | 6.0% | 0.5 |
 TNDM | $1B | -6.1 | — | — | 52.3% | -7.7% | -97.9% | -10.0% | — |
 MDT | $100B | 21.6 | 14.3 | 19.3 | 65.3% | 17.8% | 9.4% | 6.0% | 3.2 |
 SYK | $113B | 35.0 | 20.3 | 26.3 | 64.0% | 19.5% | 15.1% | 11.4% | 2.4 |
 BSX | $84B | 29.2 | 25.3 | 23.0 | 69.0% | 19.8% | 12.4% | 8.8% | 3.3 |
 ZBH | $16B | 23.5 | 9.5 | 11.1 | 61.6% | 16.5% | 5.6% | 5.4% | 3.1 |
 HOLX | $17B | 30.5 | 17.4 | 18.4 | 61.0% | 17.4% | 11.1% | 9.4% | 2.6 |
| Healthcare Median | — | 22.3 | 14.4 | 18.5 | 63.9% | -5.2% | -33.7% | -11.2% | 3.3 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonRMD — Frequently Asked Questions
Quick answers to the most common questions about buying RMD stock.
What is ResMed Inc.'s P/E ratio?
ResMed Inc.'s current P/E ratio is 21.8x. The historical average is 36.1x. This places it at the 17th percentile of its historical range.
What is ResMed Inc.'s EV/EBITDA?
ResMed Inc.'s current EV/EBITDA is 15.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 20.7x.
What is ResMed Inc.'s ROE?
ResMed Inc.'s return on equity (ROE) is 25.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 18.9%.
Is RMD stock overvalued?
Based on historical data, ResMed Inc. is trading at a P/E of 21.8x. This is at the 17th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is ResMed Inc.'s dividend yield?
ResMed Inc.'s current dividend yield is 1.02% with a payout ratio of 22.2%.
What are ResMed Inc.'s profit margins?
ResMed Inc. has 59.4% gross margin and 32.7% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does ResMed Inc. have?
ResMed Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.