Roper Technologies, Inc. (ROP)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		6.95	6.60	6.58	5.17	3.64
DSO	days	52.50	55.32	55.45	70.58	100.24

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.95
= 52.50

The days sales outstanding (DSO) for Roper Technologies, Inc. have shown a decreasing trend over the past five years, indicating an improvement in the company's ability to collect accounts receivable efficiently.

As of December 31, 2020, the DSO was 100.24 days, reflecting the number of days it took the company to collect revenue from credit sales. Over the years, the DSO decreased consistently to reach 52.50 days by December 31, 2024. This reduction suggests that Roper Technologies has been managing its accounts receivable more effectively, potentially through stricter credit policies or more efficient collection processes.

A lower DSO is generally viewed favorably as it indicates that the company is able to convert its accounts receivable into cash more quickly, improving liquidity and reducing the risk of bad debts. Overall, the declining trend in DSO for Roper Technologies is a positive indicator of its financial efficiency and effective management of working capital.