Roper Technologies Inc. Common Stock (ROP)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	1,587,600	1,941,000	1,938,800	1,936,300
Inventory	US$ in thousands	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	198,600	205,000	203,500	207,500
Inventory turnover		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	7.99	9.47	9.53	9.33

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,870,600K ÷ $118,600K
= 15.77

Over the past eight quarters, Roper Technologies Inc's inventory turnover ratio has shown some fluctuations. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times during a period the company sells and replaces its inventory.

In Q1 2022, the inventory turnover ratio was relatively low at 8.99 times, indicating that the company took approximately 8.99 times to sell and replace its inventory during that quarter. This might suggest that the company had excess inventory on hand or faced challenges in selling its products efficiently.

From Q2 2022 to Q1 2023, the inventory turnover ratio improved consistently, reaching its peak at 15.94 in Q3 2022. This suggests that the company became more efficient in managing its inventory, potentially selling products at a faster rate and reducing excess inventory levels.

However, in the last two quarters of 2023, the inventory turnover ratio decreased slightly from the peak, indicating a potential slowdown in sales relative to the rate of inventory turnover. It is essential for the company to monitor this trend to ensure optimal inventory management and avoid issues like inventory obsolescence and carrying costs.

Overall, a higher inventory turnover ratio is generally preferred as it signifies efficient inventory management and a faster sales cycle. Roper Technologies Inc may need to assess its inventory levels, sales strategies, and demand forecasting to sustain or improve its inventory turnover ratio in the future.