Roper Technologies, Inc. (ROP)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	7,039,200	6,775,600	6,574,400	6,388,800	6,177,800	5,995,200	5,782,100	5,561,700	5,371,800	5,197,500	5,079,300	4,958,300	4,934,900	4,624,600	4,590,700	4,634,700	4,659,700	4,756,100	4,912,400	5,008,900
Property, plant and equipment	US$ in thousands	149,700	132,800	116,400	119,600	119,600	98,300	93,700	86,300	85,300	83,200	77,300	98,900	82,700	105,600	125,300	134,600	127,300	146,600	129,600	133,400
Fixed asset turnover		47.02	51.02	56.48	53.42	51.65	60.99	61.71	64.45	62.98	62.47	65.71	50.13	59.67	43.79	36.64	34.43	36.60	32.44	37.90	37.55

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,039,200K ÷ $149,700K
= 47.02

The fixed asset turnover ratio reflects the efficiency of Roper Technologies, Inc. in generating revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is more effective in utilizing its fixed assets to generate sales.

Analyzing the historical trend of Roper Technologies' fixed asset turnover ratio from March 2020 to December 2024, we observe fluctuations in the ratio over the periods. The ratio ranged from 32.44 to 65.71 during this timeframe.

In the initial years, the fixed asset turnover ratio exhibited a steady increase, reaching its peak at 65.71 in June 2022. This could suggest that Roper Technologies was effectively generating sales relative to its fixed assets during this period.

However, from September 2022 to December 2024, there was a gradual decline in the fixed asset turnover ratio, indicating a potential decrease in the company's ability to efficiently utilize its fixed assets to generate revenue.

The ratio dropped to its lowest point at 47.02 in December 2024. This decline may raise concerns about the company's operational efficiency and the need to assess its fixed asset management strategies.

In conclusion, the analysis of Roper Technologies' fixed asset turnover ratio highlights a mix of positive and negative trends over the evaluated period, suggesting fluctuations in the company's efficiency in generating sales from its fixed assets. It would be important for stakeholders to closely monitor this ratio in future periods to assess the company's asset utilization effectively.