Roper Technologies Inc. Common Stock (ROP)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.60	6.58	5.17	3.64	4.85
DSO	days	55.32	55.45	70.58	100.24	75.28

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.60
= 55.32

To analyze Roper Technologies Inc's Days Sales Outstanding (DSO) over the past five years, we observe a trend of fluctuating DSO figures, which reflect the average number of days it takes for the company to collect revenue from its sales.

The DSO for Roper Technologies Inc decreased from 67.58 days in 2019 to 58.14 days in 2023, indicating an improvement in the company's ability to collect payments from customers more efficiently over the years.

In 2020, there was a spike in DSO to 74.40 days, suggesting potential challenges in the company's receivables collection process during that period. However, this metric improved significantly in the following years, reaching 59.59 days in 2022 and further decreasing to 58.14 days in 2023.

Overall, the trend suggests that Roper Technologies Inc has made notable progress in managing its accounts receivable and optimizing its cash flow by reducing the DSO metric over the years. This improvement signifies enhanced efficiency in the company's credit and collection practices, potentially leading to increased liquidity and financial stability.