Roper Technologies, Inc. (ROP)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,160,900	1,870,600	1,619,000	1,426,200	1,194,100
Inventory	US$ in thousands	120,800	118,600	111,300	69,200	165,100
Inventory turnover		17.89	15.77	14.55	20.61	7.23

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,160,900K ÷ $120,800K
= 17.89

Roper Technologies, Inc.'s inventory turnover has shown a fluctuating trend over the years based on the provided data. In December 31, 2020, the inventory turnover was 7.23 times, indicating that the company was selling and replacing its inventory approximately 7.23 times during that year.

The inventory turnover ratio significantly improved in subsequent years, reaching 20.61 times by December 31, 2021. This sharp increase suggests that the company managed its inventory more efficiently, either by reducing excess inventory levels or increasing sales during that period.

In the following years, the inventory turnover remained above the initial levels, with values of 14.55, 15.77, and 17.89 times for the years ending December 31, 2022, 2023, and 2024, respectively. These figures indicate that Roper Technologies continued to effectively manage its inventory turnover, ensuring that it converted its inventory into sales at a faster rate compared to the base year.

Overall, the increasing trend in inventory turnover for Roper Technologies, Inc. signifies improved inventory management efficiency and possibly better sales performance over the analyzed period. It implies that the company was able to optimize its inventory levels and meet customer demand more effectively, contributing positively to its overall operational performance.