ResMed Current Liabilities vs. Operating Margin

RMD Stock  USD 196.33  2.15  1.11%   
Based on the measurements of profitability obtained from ResMed's financial statements, ResMed Inc may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in April. Profitability indicators assess ResMed's ability to earn profits and add value for shareholders. The current year's Days Of Sales Outstanding is expected to grow to 59.78, whereas Price To Sales Ratio is forecasted to decline to 4.25. At present, ResMed's Income Before Tax is projected to increase significantly based on the last few years of reporting. The current year's Net Income is expected to grow to about 1.1 B, whereas Total Other Income Expense Net is forecasted to decline to (2.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.670.64
Sufficiently Up
Very volatile
Net Profit Margin0.130.19
Way Down
Very volatile
Operating Profit Margin0.160.24
Way Down
Slightly volatile
Pretax Profit Margin0.180.23
Significantly Down
Very volatile
Return On Assets0.130.15
Fairly Down
Very volatile
Return On Equity0.140.2
Way Down
Pretty Stable
For ResMed profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ResMed to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ResMed Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ResMed's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ResMed Inc over time as well as its relative position and ranking within its peers.
  
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Is ResMed's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ResMed. If investors know ResMed will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ResMed listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.07)
Dividend Share
1.84
Earnings Share
6.04
Revenue Per Share
30.633
Quarterly Revenue Growth
0.125
The market value of ResMed Inc is measured differently than its book value, which is the value of ResMed that is recorded on the company's balance sheet. Investors also form their own opinion of ResMed's value that differs from its market value or its book value, called intrinsic value, which is ResMed's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ResMed's market value can be influenced by many factors that don't directly affect ResMed's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ResMed's value and its price as these two are different measures arrived at by different means. Investors typically determine if ResMed is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ResMed's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

ResMed Inc Operating Margin vs. Current Liabilities Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining ResMed's current stock value. Our valuation model uses many indicators to compare ResMed value to that of its competitors to determine the firm's financial worth.
ResMed Inc is rated second in current liabilities category among related companies. It is currently regarded as top stock in operating margin category among related companies . The ratio of Current Liabilities to Operating Margin for ResMed Inc is about  2,186,391,364 . Comparative valuation analysis is a catch-all model that can be used if you cannot value ResMed by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for ResMed's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the ResMed's earnings, one of the primary drivers of an investment's value.

ResMed Operating Margin vs. Current Liabilities

Current Liabilities is the company's short term debt. This usually includes obligations that are due within the next 12 months or within one fiscal year. Current liabilities are very important in analyzing a company's financial health as it requires the company to convert some of its current assets into cash.

ResMed

Current Liabilities

 = 

Payables

+

Accrued Debt

 = 
637.99 M
Current liabilities appear on the company's balance sheet and include all short term debt accounts, accounts and notes payable, accrued liabilities as well as current payments due on the long-term loans. One of the most useful applications of Current Liabilities is the current ratio which is defined as current assets divided by its current liabilities. High current ratios mean that current assets are more than sufficient to pay off current liabilities.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

ResMed

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.29 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

ResMed Operating Margin Comparison

ResMed is currently under evaluation in operating margin category among related companies.

ResMed Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in ResMed, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ResMed will eventually generate negative long term returns. The profitability progress is the general direction of ResMed's change in net profit over the period of time. It can combine multiple indicators of ResMed, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-245.3 M-233 M
Operating Income1.3 B1.4 B
Income Before Tax1.3 B1.3 B
Total Other Income Expense Net-2.7 M-2.8 M
Net IncomeB1.1 B
Income Tax Expense234.7 M246.5 M
Net Income Applicable To Common SharesB1.1 B
Net Income From Continuing OpsB1.1 B
Non Operating Income Net Other-32.6 M-30.9 M
Interest Income51.4 M31.4 M
Net Interest Income-42.6 M-40.5 M
Change To Netincome69.4 M45.6 M
Net Income Per E B T 0.73  0.57 

ResMed Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on ResMed. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of ResMed position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the ResMed's important profitability drivers and their relationship over time.

Use ResMed in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if ResMed position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ResMed will appreciate offsetting losses from the drop in the long position's value.

ResMed Pair Trading

ResMed Inc Pair Trading Analysis

The ability to find closely correlated positions to ResMed could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ResMed when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back ResMed - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling ResMed Inc to buy it.
The correlation of ResMed is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ResMed moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ResMed Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for ResMed can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your ResMed position

In addition to having ResMed in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Restaurants
Restaurants Theme
Entities that are involved in restaurant business, as well as coffee shop chains and other eateries. The Restaurants theme has 43 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Restaurants Theme or any other thematic opportunities.
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When determining whether ResMed Inc is a strong investment it is important to analyze ResMed's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact ResMed's future performance. For an informed investment choice regarding ResMed Stock, refer to the following important reports:
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You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running ResMed's price analysis, check to measure ResMed's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy ResMed is operating at the current time. Most of ResMed's value examination focuses on studying past and present price action to predict the probability of ResMed's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ResMed's price. Additionally, you may evaluate how the addition of ResMed to your portfolios can decrease your overall portfolio volatility.
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To fully project ResMed's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ResMed Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include ResMed's income statement, its balance sheet, and the statement of cash flows.
Potential ResMed investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although ResMed investors may work on each financial statement separately, they are all related. The changes in ResMed's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on ResMed's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.