Roper Technologies, Inc. (ROP)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	2,160,900	2,054,400	1,978,600	1,919,200	1,870,600	1,810,900	1,752,300	1,687,500	1,619,000	1,566,600	1,518,500	1,469,800	1,527,300	1,196,500	1,224,400	1,335,100	1,388,900	1,493,300	1,585,900	1,604,900
Inventory	US$ in thousands	120,800	129,000	128,800	126,000	118,600	122,500	118,000	115,000	111,300	101,000	92,500	202,700	69,200	174,400	212,700	206,000	165,100	214,900	216,600	206,200
Inventory turnover		17.89	15.93	15.36	15.23	15.77	14.78	14.85	14.67	14.55	15.51	16.42	7.25	22.07	6.86	5.76	6.48	8.41	6.95	7.32	7.78

December 31, 2024 calculation

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

The inventory turnover ratio of Roper Technologies, Inc. has displayed fluctuations over the periods provided. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times the inventory is sold and replaced during a specific time frame.

From March 31, 2020, to June 30, 2021, the inventory turnover ratio ranged between 5.76 and 8.41, showing relatively stable performance in managing its inventory during this period. However, there was a significant spike in the ratio to 22.07 as of December 31, 2021, indicating that Roper Technologies effectively turned over its inventory 22.07 times during that period, possibly due to increased sales volume or more effective inventory management practices.

Subsequently, the inventory turnover ratio remained elevated above the earlier levels, with values ranging from 14.55 to 17.89 up to December 31, 2024. This sustained higher range suggests continued efficiency in managing inventory or possibly changes in sales patterns or operational improvements.

Overall, Roper Technologies' inventory turnover ratio indicates a generally efficient management of inventory levels throughout the provided periods, with occasional spikes that may indicate changes in business operations, sales strategies, or inventory management practices. It is important for the company to monitor and analyze these fluctuations to ensure optimal inventory management in line with its operational and financial objectives.