Roper Technologies, Inc. (ROP)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	17.89	15.77	14.55	20.61	7.23
Receivables turnover	6.95	6.60	6.58	5.17	3.64
Payables turnover	—	—	—	—	6.72
Working capital turnover	—	—	—	—	—

Based on the provided data for Roper Technologies, Inc., let's analyze the activity ratios:

1. Inventory Turnover:
- Roper Technologies' inventory turnover has been increasing over the years, from 7.23 in 2020 to 17.89 in 2024. This indicates that the company is managing its inventory more efficiently and selling its products at a faster rate.

2. Receivables Turnover:
- The receivables turnover ratio for Roper Technologies has also shown a positive trend, increasing from 3.64 in 2020 to 6.95 in 2024. This suggests that the company is collecting its accounts receivable more quickly, improving its cash flow.

3. Payables Turnover:
- The data shows that there is no information provided for the payables turnover ratio for the years 2021 to 2024. This ratio is important to assess how quickly the company is paying its suppliers, and the absence of this data makes it challenging to evaluate the efficiency of Roper Technologies' payables management.

4. Working Capital Turnover:
- The data indicates that there is no information available for the working capital turnover ratio for the years 2020 to 2024. This ratio helps in understanding how efficiently the company is utilizing its working capital to generate sales, and its absence restricts a complete analysis of Roper Technologies' operational efficiency.

Overall, the analysis reveals that Roper Technologies has been effective in managing its inventory and accounts receivable efficiently over the years. However, the absence of data for payables turnover and working capital turnover limits a comprehensive evaluation of the company's overall activity ratios.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	20.40	23.14	25.09	17.71	50.47
Days of sales outstanding (DSO)	days	52.50	55.32	55.45	70.58	100.24
Number of days of payables	days	—	—	—	—	54.35

Roper Technologies, Inc.'s activity ratios show the efficiency of the company in managing its operations.

1. Days of Inventory on Hand (DOH)
- In 2020, Roper Technologies held inventory for an average of 50.47 days before turning it into sales. This decreased significantly to 17.71 days by the end of 2021, indicating a more efficient inventory management process. However, the DOH increased slightly to 25.09 days in 2022, followed by a decrease to 23.14 days in 2023, and further improved to 20.40 days by the end of 2024. Overall, the trend shows a progressive effort to minimize inventory holding period.

2. Days of Sales Outstanding (DSO)
- The DSO metric reveals that in 2020, Roper Technologies took an average of 100.24 days to collect its receivables. This improved to 70.58 days in 2021, showing a positive trend in receivables management. The DSO continued to decrease to 55.45 days in 2022, remained stable at 55.32 days in 2023, and further dropped to 52.50 days by the end of 2024. This trend indicates that the company has been effective in accelerating its collection process.

3. Number of Days of Payables
- The data provided for 2020 shows that Roper Technologies took an average of 54.35 days to pay its payables, indicating that the company had a reasonable payment period. However, no data is available for payables for the subsequent years, suggesting a change in reporting or operational policy regarding payables management.

Overall, these activity ratios suggest that Roper Technologies has been successful in optimizing its inventory turnover, accelerating its receivables collection, and maintaining balanced payment terms with its suppliers over the years.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	47.02	51.65	62.98	58.45	31.60
Total asset turnover	0.22	0.22	0.20	0.20	0.17

Roper Technologies, Inc.'s long-term activity ratios indicate the efficiency with which the company utilizes its assets to generate revenue over a period of time.

Firstly, looking at the Fixed Asset Turnover ratio, we observe a consistent increase from 31.60 in 2020 to 47.02 in 2024. This indicates that the company is becoming more efficient in generating revenue from its fixed assets over the years. It suggests that the company is managing its property, plant, and equipment more effectively to generate sales.

Secondly, the Total Asset Turnover ratio also shows a positive trend, increasing from 0.17 in 2020 to 0.22 in 2024. This signifies that Roper Technologies is efficiently utilizing its total assets to generate sales. The increase in this ratio indicates that the company is able to generate more revenue per dollar of assets employed, reflecting improved operational efficiency and effective asset utilization.

Overall, the upward trends in both Fixed Asset Turnover and Total Asset Turnover ratios suggest that Roper Technologies, Inc. is effectively managing its assets to drive revenue growth and enhance operational efficiency over the years. These ratios indicate a positive trajectory in the company's long-term activity performance, reflecting effective asset utilization and operational effectiveness.