Detailed financial statements for ResMed Inc. (RMD): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
ResMed Inc. is a leading global medical technology enterprise engaged in the creation, production, distribution, and marketing of healthcare devices and connected digital solutions. The company operates through two primary segments: Sleep and Respiratory Care, and Software as a Service.
Analysis Summary
ResMed Inc. reported revenue of $5.65B in the most recent fiscal year, growing at a 5-year CAGR of 12.1%. Net income reached $1.52B, with a 26.3% 5-year CAGR.
Trailing-twelve-month margins: gross margin 61.2%, operating margin 33.5%, net margin 26.9%. Free cash flow grew at 21.6% CAGR over 5 years.
At the current price of $222.86, RMD trades at a P/E of 21.05 and an ROE of 23.13%. Market capitalisation stands at $32.3B, placing it among large-cap names.
Balance sheet quality for RMD: current ratio of 3.1, net cash position of $643.3M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $1.65B represents 108% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $2.07B | $2.34B | $2.61B | $2.96B | $3.20B | $3.58B | $4.22B | $4.69B | $5.15B | $5.65B |
| Cost of Revenue | $865.0M | $978.0M | $1.07B | $1.24B | $1.36B | $1.55B | $1.87B | $2.03B | $2.09B | $2.20B |
| Gross Profit | $1.20B | $1.36B | $1.54B | $1.72B | $1.84B | $2.02B | $2.36B | $2.66B | $3.05B | $3.46B |
| Research & Development | $144.5M | $155.1M | $180.7M | $201.9M | $225.3M | $253.6M | $287.6M | $307.5M | $331.3M | $378.3M |
| Selling, General & Admin | $554.0M | $600.4M | $645.0M | $676.7M | $670.4M | $739.4M | $874.0M | $917.1M | $991.0M | $817.4M |
| Operating Expenses | $775.9M | $820.3M | $957.3M | $908.7M | $935.4M | $1.02B | $1.22B | $1.34B | $1.37B | $1.57B |
| Operating Income | $425.8M | $541.8M | $579.3M | $809.7M | $903.7M | $1.00B | $1.13B | $1.32B | $1.69B | $1.89B |
| EBITDA | $568.9M | $680.2M | $705.8M | $990.4M | $1.10B | $1.18B | $1.36B | $1.53B | $1.91B | $2.15B |
| Interest Expense | $28.2M | $28.4M | $36.2M | $40.4M | $24.0M | $22.3M | $47.4M | $45.7M | $12.6M | $29.0M |
| Pre-tax Income | $418.7M | $521.3M | $518.8M | $733.1M | $883.7M | $960.5M | $1.10B | $1.26B | $1.68B | $1.92B |
| Income Tax | $76.5M | $205.7M | $114.3M | $111.4M | $409.2M | $181.0M | $204.1M | $243.8M | $276.8M | $396.1M |
| Net Income | $342.3M | $315.6M | $404.6M | $621.7M | $474.5M | $779.4M | $897.6M | $1.02B | $1.40B | $1.52B |
| EPS | $2.42 | $2.21 | $2.83 | $4.31 | $3.27 | $5.34 | $6.12 | $6.94 | $9.55 | $10.44 |
| EPS (Diluted) | $2.40 | $2.19 | $2.80 | $4.27 | $3.24 | $5.30 | $6.09 | $6.92 | $9.51 | $10.40 |
| Shares Outstanding (Diluted) | $142.5M | $144.0M | $144.5M | $145.7M | $146.5M | $147.0M | $147.5M | $147.6M | $147.3M | $145.0M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $1.34B | $1.42B | $1.43B | $1.46B |
| Gross Profit | $820.8M | $884.7M | $891.0M | $861.2M |
| Operating Income | $446.5M | $497.6M | $499.8M | $448.7M |
| EBITDA | $503.3M | $566.4M | $583.6M | $493.0M |
| Net Income | $348.5M | $392.6M | $398.7M | $383.4M |
| EPS | $2.38 | $2.69 | $2.72 | $2.65 |
| EPS (Diluted) | $2.37 | $2.68 | $2.71 | $2.64 |
Balance Sheet (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $821.9M | $188.7M | $147.1M | $463.2M | $295.3M | $273.7M | $227.9M | $238.4M | $1.21B | $1.47B |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $450.5M | $483.7M | $528.5M | $474.6M | $625.2M | $576.0M | $704.9M | $837.3M | $990.7M | $1.04B |
| Inventory | $268.3M | $268.7M | $349.6M | $416.9M | $457.0M | $743.9M | $998.0M | $822.2M | $927.7M | $945.8M |
| Total Current Assets | $1.64B | $1.07B | $1.15B | $1.52B | $1.57B | $1.93B | $2.37B | $2.36B | $3.51B | $4.32B |
| Property, Plant & Equipment | $394.2M | $386.6M | $387.5M | $535.7M | $592.1M | $630.5M | $665.8M | $699.1M | $718.3M | $735.0M |
| Goodwill | $1.06B | $1.07B | $1.86B | $1.89B | $1.93B | $1.94B | $2.77B | $2.84B | $3.05B | $3.36B |
| Intangible Assets | $261.8M | $215.2M | $522.0M | $448.2M | $392.6M | $345.9M | $552.3M | $485.9M | $464.9M | 0 |
| Total Assets | $3.47B | $3.06B | $4.11B | $4.59B | $4.73B | $5.10B | $6.75B | $6.87B | $8.17B | $8.97B |
| Accounts Payable | $92.8M | $92.7M | $115.7M | $135.8M | $138.0M | $159.2M | $150.8M | $237.7M | $278.2M | $308.9M |
| Short-term Debt | 0 | $11.5M | $12.0M | $12.0M | $12.0M | $9.9M | $9.9M | $9.9M | $9.9M | $259.9M |
| Total Current Liabilities | $360.1M | $511.2M | $556.0M | $602.8M | $911.8M | $689.3M | $758.5M | $910.7M | $1.02B | $1.40B |
| Long-term Debt | $1.08B | $270.0M | $1.26B | $1.16B | $643.4M | $765.3M | $1.43B | $697.3M | $658.4M | $399.4M |
| Total Liabilities | $1.51B | $1.00B | $2.04B | $2.09B | $1.84B | $1.74B | $2.62B | $2.01B | $2.21B | $2.38B |
| Retained Earnings | $2.32B | $2.43B | $2.44B | $2.83B | $3.08B | $3.61B | $4.25B | $4.99B | $6.08B | $7.26B |
| Total Equity | $1.96B | $2.06B | $2.07B | $2.50B | $2.89B | $3.36B | $4.13B | $4.86B | $5.97B | $6.59B |
| Total Debt | $1.08B | $281.5M | $1.27B | $1.30B | $793.7M | $917.5M | $1.58B | $873.9M | $851.8M | $825.9M |
| Net Debt | $256.7M | $92.8M | $1.12B | $836.1M | $498.4M | $643.8M | $1.35B | $635.6M | -$357.6M | -$643.3M |
| Working Capital | $1.28B | $554.5M | $589.4M | $920.7M | $663.0M | $1.24B | $1.61B | $1.45B | $2.49B | $2.93B |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $1.38B | $1.42B | $1.66B | $1.47B |
| Total Assets | $8.31B | $8.50B | $8.78B | $8.97B |
| Total Liabilities | $2.19B | $2.18B | $2.29B | $2.38B |
| Total Equity | $6.12B | $6.32B | $6.49B | $6.59B |
| Total Debt | $846.4M | $1.00B | $843.2M | $825.9M |
Cash Flow (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $342.3M | $315.6M | $404.6M | $621.7M | $474.5M | $779.4M | $897.6M | $1.02B | $1.40B | $1.52B |
| Depreciation & Amortization | $112.2M | $120.0M | $150.8M | $181.4M | $191.5M | $193.8M | $197.6M | $216.2M | $235.8M | $244.2M |
| Stock-based Compensation | $45.9M | $48.4M | $52.1M | $57.6M | $63.9M | $65.3M | $71.1M | $80.2M | $91.7M | $104.3M |
| Change in Working Capital | -$89.9M | $9.1M | -$177.1M | -$97.9M | $1.4M | -$708.1M | -$462.1M | $44.8M | $16.7M | -$74.2M |
| Operating Cash Flow | $414.1M | $505.0M | $459.1M | $802.3M | $736.7M | $351.1M | $693.3M | $1.40B | $1.75B | $1.81B |
| Capital Expenditure | -$71.5M | -$71.5M | -$77.3M | -$105.9M | -$116.8M | -$156.0M | -$134.0M | -$114.9M | -$89.9M | -$156.3M |
| Acquisitions | -$7.3M | -$902,000 | -$951.4M | -$27.9M | -$39.1M | -$42.8M | -$1.01B | -$133.5M | -$139.2M | -$350.7M |
| Stock Repurchased | 0 | -$53.8M | -$22.8M | 0 | 0 | 0 | 0 | -$150.0M | -$300.0M | -$700.0M |
| Dividends Paid | -$186.3M | -$199.5M | -$211.7M | -$225.1M | -$226.7M | -$245.3M | -$258.3M | -$282.3M | -$310.9M | -$349.7M |
| Free Cash Flow | $342.6M | $433.6M | $381.7M | $696.3M | $619.9M | $195.1M | $559.3M | $1.29B | $1.66B | $1.65B |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $457.3M | $339.7M | $554.1M | $1.81B |
| Capital Expenditure | -$43.0M | -$34.6M | -$33.7M | -$156.3M |
| Free Cash Flow | $414.4M | $305.2M | $520.5M | $1.65B |
| Dividends Paid | -$87.8M | -$87.6M | -$87.2M | -$349.7M |
| Stock-based Compensation | $21.2M | $28.9M | $26.8M | $104.3M |
Growth & Margins (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +13.2% | +11.4% | +13.4% | +8.1% | +11.9% | +18.0% | +10.9% | +9.8% | +9.9% | |
| Net Income Growth (YoY) | -7.8% | +28.2% | +53.7% | -23.7% | +64.3% | +15.2% | +13.7% | +37.2% | +8.8% | |
| EPS Growth (YoY) | -8.7% | +28.1% | +52.3% | -24.1% | +63.3% | +14.6% | +13.4% | +37.6% | +9.3% | |
| Shares Change (YoY) | +1.1% | +0.3% | +0.8% | +0.5% | +0.4% | +0.3% | +0.1% | -0.1% | -1.6% | |
| FCF Growth (YoY) | +26.6% | -12.0% | +82.4% | -11.0% | -68.5% | +186.7% | +130.0% | +29.2% | -0.7% | |
| Gross Margin | 58.1% | 58.2% | 59.0% | 58.1% | 57.5% | 56.6% | 55.8% | 56.7% | 59.4% | 61.2% |
| Operating Margin | 20.6% | 23.2% | 22.2% | 27.4% | 28.3% | 28.0% | 26.8% | 28.2% | 32.7% | 33.5% |
| EBITDA Margin | 27.5% | 29.1% | 27.1% | 33.5% | 34.5% | 32.9% | 32.2% | 32.7% | 37.2% | 38.0% |
| Net Margin | 16.6% | 13.5% | 15.5% | 21.0% | 14.8% | 21.8% | 21.3% | 21.8% | 27.2% | 26.9% |
| FCF Margin | 16.6% | 18.5% | 14.6% | 23.5% | 19.4% | 5.5% | 13.2% | 27.5% | 32.3% | 29.2% |
| Effective Tax Rate | 18.3% | 39.5% | 22.0% | 15.2% | 46.3% | 18.8% | 18.5% | 19.3% | 16.5% | 20.6% |
Per-Share Data (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $2.40 | $3.01 | $2.64 | $4.78 | $4.23 | $1.33 | $3.79 | $8.72 | $11.28 | $11.38 |
| Dividends Per Share | $1.31 | $1.39 | $1.47 | $1.55 | $1.55 | $1.67 | $1.75 | $1.91 | $2.11 | $2.41 |
| Shares Outstanding (Basic) | $141.4M | $142.8M | $143.1M | $144.3M | $145.3M | $146.1M | $146.8M | $147.0M | $146.7M | $144.7M |
What to look at in Healthcare / Pharma
The R&D pipeline is the invisible asset. Patents expiring = revenues evaporating. Look at innovation and cash flow.
- R&D / Revenue — Shows investment in future pipeline. Serious pharma reinvests 15-20%
- 5y EPS growth — After patent expirations, are they still growing?
- Gross margin — Branded pharma >70%. Generics much lower — defines the business type
- FCF / Net Income — Earnings quality — big pharma should convert >90%
- ROIC — Capital reinvested efficiently — key in pharma due to long R&D cycles
- Net debt / EBITDA — Pharma acquisitions pile up debt — watch the post-M&A picture
- P/E vs own 10y history — The best comparison is with its own history, not with peers
Profitability
| Return on Equity | 23.13% |
| Return on Invested Capital | 19.11% |
| Return on Assets | 16.99% |
| Gross Margin | 61.16% |
| Operating Margin | 33.48% |
| Net Margin | 26.94% |
Financial Health
| Debt / Equity | 0.13 |
| Current Ratio | 3.10 |
| Piotroski F-Score | 8 |
| Altman Z-Score | 9.96 |
Key Ratios (10y)
| Year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 32.18 | 46.87 | 43.73 | 44.55 | 75.39 | 39.26 | 35.70 | 26.94 | 27.02 | 18.67 |
| P/B | 5.62 | 7.18 | 8.55 | 11.10 | 12.41 | 9.11 | 7.76 | 5.65 | 6.34 | 4.28 |
| P/S | 5.33 | 6.32 | 6.79 | 9.37 | 11.21 | 8.56 | 7.59 | 5.87 | 7.36 | 4.99 |
| Gross Margin | 58.1% | 58.2% | 59.0% | 58.1% | 57.5% | 56.6% | 55.8% | 56.7% | 59.4% | 61.2% |
| Operating Margin | 20.6% | 23.2% | 22.2% | 27.4% | 28.3% | 28.0% | 26.8% | 28.2% | 32.7% | 33.5% |
| Net Margin | 16.6% | 13.5% | 15.5% | 21.0% | 14.8% | 21.8% | 21.3% | 21.8% | 27.2% | 26.9% |
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