Roper Technologies Inc. Common Stock (ROP)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover	15.77	14.55	20.61	7.23	7.99
Receivables turnover	6.60	6.58	5.17	3.64	4.85
Payables turnover	—	—	—	6.72	9.80
Working capital turnover	—	—	—	—	—

Inventory turnover for Roper Technologies Inc has been steadily increasing over the past five years, indicating that the company is managing its inventory more efficiently. This improvement suggests that Roper is selling its inventory at a faster rate, which can lead to lower carrying costs and potential cash flow improvements.

Receivables turnover has also shown a positive trend over the years, indicating that Roper is collecting its accounts receivable more effectively. A higher receivables turnover ratio suggests that the company is efficiently converting its credit sales into cash, reducing the risk of bad debts and improving liquidity.

Payables turnover has fluctuated slightly but has remained relatively stable over the years. This indicates that Roper is managing its accounts payable well and is able to pay its suppliers in a timely manner. A consistent payables turnover ratio reflects good relationships with suppliers and efficient use of trade credit.

Unfortunately, the data provided does not include the working capital turnover ratio for Roper Technologies Inc, making it difficult to assess how efficiently the company is using its working capital to generate sales. It would be beneficial to have this information to gain a more comprehensive understanding of Roper's overall operational efficiency.

Average number of days

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	23.14	25.09	17.71	50.47	45.66
Days of sales outstanding (DSO)	days	55.32	55.45	70.58	100.24	75.28
Number of days of payables	days	—	—	—	54.35	37.24

For Roper Technologies Inc, the activity ratios show how efficiently the company manages its inventory, collects its receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH): The trend in DOH indicates that Roper has been improving its inventory management efficiency over the years. A lower number of days indicates that the company is selling its inventory faster, which is positive. In 2023, Roper had 23.14 days of inventory on hand, down from 37.37 days in 2019.

2. Days of Sales Outstanding (DSO): The trend in DSO shows that Roper is improving its collection of receivables over time. A lower number of days indicates that the company is collecting its outstanding receivables faster. In 2023, Roper had 58.14 days of sales outstanding, compared to 67.58 days in 2019.

3. Number of Days of Payables: The trend in the number of days of payables indicates that Roper is taking longer to pay its suppliers. While extending payables can provide a short-term boost to cash flow, it may strain relationships with suppliers in the long run. In 2023, Roper had 27.90 days of payables, slightly up from 30.48 days in 2019.

Overall, Roper appears to be effectively managing its inventory and receivables by reducing the number of days required to sell products and collect payments. However, the increase in the number of days of payables may suggest a deliberate strategy to preserve cash flow. Investors and analysts should continue monitoring these ratios to assess the company's operational efficiency and financial health.

Long-term

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Fixed asset turnover	51.65	62.98	58.45	31.60	33.79
Total asset turnover	0.22	0.20	0.20	0.17	0.26

The long-term activity ratios of Roper Technologies Inc indicate how efficiently the company is utilizing its assets to generate sales over multiple years.

1. Fixed asset turnover:
- The fixed asset turnover ratio measures how well a company is utilizing its fixed assets to generate revenue. Roper Technologies has shown fluctuating but generally high fixed asset turnover ratios over the past five years, ranging from 38.36 to 62.98. This suggests that the company is efficiently using its fixed assets to generate sales, with a significant increase from 2020 to 2022, followed by a slight decrease in 2023.

2. Total asset turnover:
- The total asset turnover ratio indicates the efficiency with which a company is using all its assets to generate revenue. Roper Technologies' total asset turnover has fluctuated over the five-year period, with the ratio ranging from 0.20 to 0.30. The company's total asset turnover was relatively low in 2022 and 2023 compared to previous years, indicating a decline in the efficiency of utilizing all assets to generate sales.

Overall, Roper Technologies Inc has shown strong utilization of its fixed assets to generate sales, as evidenced by the consistently high fixed asset turnover ratios. However, there has been some fluctuation in the total asset turnover ratios, suggesting varying levels of efficiency in utilizing all assets to generate revenue over the years. Further analysis and comparison with industry peers may provide deeper insights into the company's long-term asset management efficiency.