The ResMed (ASX:RMD) share price was trading 2.63% higher today as news of its quarterly financial report continue to buoy the sleep device maker.
For context, the broader Australian share market or S&P/ASX 200 (INDEXASX: XJO) was trading at 6933.9, up 0.15%.
About ResMed
ResMed Inc is a United States based business that develops and manufactures medical devices to help people with sleep apnea, chronic obstructive pulmonary disease (COPD) and other chronic diseases.
ResMed, which is short for Respiratory Medicine, was founded in 1989 by Dr Peter Farrell and now helps customers & patients in over 120 countries.
ResMed’s financial report
In the Rask video above, Owen explains the difference between ‘underlying’ or ‘normalised’ results and ‘statutory’ results. Knowing the difference between these two numbers is essential to understanding a financial report.
Key Results for the Quarter
| This period | Last period | Change | |
| Revenue | 736 | 651 | 13.06% |
| Profit | 161 | 125 | 28.8% |
| Cash flow | 232 | 178 | 30.34% |
| Dividends (cents per share) |
39 |
All figures shown in USD millions, unless otherwise stated. Source: ResMed announcements; author calculations.
As can be seen above, the company’s revenue came in at $736 million, up $85 million. ResMed’s profit was $161 million, up $36 million. In a press release, the company’s CEO, Mick Farrell, put the improved top and bottom line performance down to new product releases.
“We are seeing continued strong customer demand for our new products, particularly in masks and accessories with another quarter of high-teens growth in that category,” Mr Farrell said.
“ResMed is continuing to lead in digital health as we transform lives in out-of-hospital healthcare, leading the innovation of medical devices and software that improve health outcomes, create efficiencies, and reduce overall healthcare system costs.”
Turning to the cash flow statement, which is an important financial statement because it represents the underlying health of a business, operating cash flow was $232 million, up $54 million.
What Happens Next?
Mr Farrell concluded his statement by commenting on the company’s long-term aspirations for more treatment and growth.
“With over 100 million lives improved in 2019, and strong growth ahead, we’re well on our way to improving 250 million lives in out-of-hospital healthcare in 2025.”
ResMed shares were last seen trading at $24.54, giving the company a market capitalisation more than $10 billion.
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