ResMed [RMD]
Every figure used in RMD_Valuation.md, with its source and any correction applied. Sources are
EDGAR primary filings for anything load-bearing; Alpha Vantage normalised statements are used only
where cross-checked and stated.
DATA_DEFECTS.md): FY2026 Q3 in the mention-frequency
table is calendar Q1 2026. Any cross-name series keyed on the raw label would misalign by two
quarters against the December-FY names in this cluster.| 9M FY2026 (EDGAR) | + Q4 FY2025 | = TTM | |
|---|---|---|---|
| Revenue | $4,189.796m | $1,348.0m | $5,537.8m |
| Gross profit | $2,590.520m | $820.1m | $3,410.6m → 61.59% |
| Operating income | $1,438.003m | $454.5m | $1,892.5m → 34.17% |
| R&D | $272.560m (6.51%) | ||
| SG&A | $823.245m (19.65%) | ||
| Amort. acquired intangibles (opex) | $34.967m (0.83%) | ||
| Restructuring (note 11) | $21.745m (0.52%) | $0 prior year | non-recurring |
Bridge check on the 9M actuals: 61.83 − 6.51 − 19.65 − 0.83 − 0.52 = 34.32%, which equals the filed
9M operating margin exactly. Effective tax rate 9M FY26 = $305.391m / $1,445.252m = 21.13%.
AV's quarterly operating-income series sums to $1,443.9m for the same nine months against EDGAR's $1,438.003m — a $5.9m (0.41%) difference. EDGAR used throughout.
| Cash and cash equivalents | $1,660.513m — includes $668.2m in money-market accounts requiring up to 90 days' notice, disclosed in the 10-Q. Still cash equivalents under GAAP; flagged, not adjusted |
| Short-term investments | $5.475m (AV; EDGAR has no such tag) |
| Total debt | $664.096m (DebtLongtermAndShorttermCombinedAmount), of which $404.168m non-current |
| Net cash | +$1,001.892m |
| Capital-lease obligations | $179.073m — excluded from EV; EV is stated lease-exclusive |
| Operating lease liabilities | $149.840m non-current + $29.233m current |
| Goodwill / intangibles | $3,043.136m / $425.185m |
| Shareholders' equity | $6,491.911m |
The screen's net_cash of $592.249m subtracted BOTH LongTermDebt ($404.168m) AND
DebtLongtermAndShorttermCombinedAmount ($664.096m) — the same debt counted twice. Corrected
above. This is the reverse of the IRTC and BSX defects (missing debt); here it is duplicated debt,
and it moves in the direction that suppresses a PASS rather than manufacturing one.
CFO $1,890.0m; capex $141.8m; FCF $1,748.2m → FCF margin +31.57%. Net income TTM $1,519.6m, so cash conversion is 115% — accruals benign, which is the Quality Criteria's earnings-quality test.
The sign of FCF is positive and large, so per DATA_DEFECTS.md omitting --fcf-margin from
reverse_dcf.py would overstate required CAGR. Measured on this name: 3.7% with the flag vs
10.2% without — a 6.5pp bias, larger than any previously recorded instance in the corpus.
Use EDGAR AccountsReceivableNetCurrent, not AV currentNetReceivables — AV runs $47.1m to
$61.4m (4.7%–6.2%) higher on every quarter and would inflate DSO by ~3 days throughout.
| AR (EDGAR) | revenue | DSO (91.25d) | |
|---|---|---|---|
| 2026-03-31 | $998.837m | $1,431.406m | 63.67d |
| 2025-03-31 | $907.825m | $1,291.736m | 64.13d |
| same-quarter Δ | −0.46d (improvement) |
Factoring / securitisation / receivables-sale search: ZERO hits across the Q3 FY2026 10-Q and the
FY2025 10-K for factoring, securitiz, sold … receivable, supply chain financ. No such line in
the cash-flow statement. Per the CLS finding, a falling DSO is evidence only once the balance is known
not to have been sold down — on RMD it is now known.
SPLITS queried explicitly: three splits on record — 2010-08-31 (2:1), 2005-10-03 (2:1), 2000-04-03
(2:1). None since 2010. No split-basis mismatch is possible in the price/share series used here.
No spin-off. Single share class, so the META/GOOGL dimensional-tagging problem does not arise.
entity_public_float $33.42bn against a $30.01bn market cap — float exceeds market cap, which is
arithmetically impossible for a single-class issuer and indicates the screen's float figure is stale
or computed at a different price. Flagged; it is not used anywhere in this memo.
valuation.md is
the reverse DCF plus the neighbouring sensitivity surface, both of which are in RMD_Valuation.md.
Terminal value exceeds 60% of EV, which makes the reverse DCF mandatory as the primary output
and a forward DCF supporting evidence only.