Roper Technologies, Inc. (ROP)

Days of inventory on hand (DOH)

		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
DOH	days	20.40	23.14	25.09	17.71	50.47

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 17.89
= 20.40

To analyze Roper Technologies, Inc.'s days of inventory on hand (DOH) over the years, we observe a progressive decline from 2020 to 2024. In 2020, the company held inventory for an average of 50.47 days, which decreased significantly to 17.71 days in 2021. Subsequently, there was a slight increase to 25.09 days in 2022, followed by further decreases to 23.14 days in 2023 and 20.40 days in 2024.

This trend indicates that Roper Technologies has been managing its inventory more efficiently and effectively over the years, leading to quicker turnover of inventory. The declining DOH suggests that the company is holding less inventory for shorter periods, which could signify improved inventory management, better demand forecasting, and potentially reduced carrying costs. However, it is essential to continue monitoring this metric to ensure that inventory levels remain optimized to meet customer demand while minimizing costs.