ResMed Inc. — Earnings Quality Grade D
RMD · Healthcare
Significant concerns
Screening Summary
Management Signals
Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 67 days, change +1 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 9.8%, CFFO 25.0%. Cash follows revenue
Expense Quality
Inventory 12.8% vs COGS 3.0%. Normal
CapEx growth -12.4% vs revenue 9.8%. Normal
SG&A/Gross Profit = 32.4%. Normal
Gross margin 59.4%, change +2.7pp. Stable
Cash Flow Quality
CFFO/NI = 1.25. Profits backed by cash
FCF $1.7B, FCF/NI = 1.18
Accruals ratio = -4.3%. Low accruals
Cash $1.2B covers debt $0.9B
Balance Sheet Health
Goodwill+Intangibles $3.5B = 59% of equity. Over 50%
Debt/EBITDA = 0.4x. Healthy
Other assets -34.6% vs revenue 9.8%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 6% YoY. Normal
Manipulation Score
M-Score = -2.61 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25