Roper Technologies Inc. Common Stock (ROP)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	6.60	6.98	7.30	7.62	6.58	7.13	6.92	5.73	5.28	5.43	4.25	4.37	4.22	4.65	5.10	5.34	5.14	5.97	5.87	6.41
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	7.81	—	—	—	9.80	—	—	—
Working capital turnover	—	—	—	—	—	4.52	2.78	5.04	—	—	—	—	—	—	7.22	—	—	45.13	33.39	37.34

Roper Technologies Inc's activity ratios provide insights into how efficiently the company manages its assets and liabilities to generate revenue.

1. Inventory Turnover:
- Roper Technologies Inc's inventory turnover has been relatively stable, ranging from 13.68 to 15.77 in the past eight quarters.
- A higher inventory turnover ratio indicates that the company sells its inventory quickly, which is favorable as it reduces the risk of obsolete inventory.

2. Receivables Turnover:
- The company's receivables turnover ratio has also shown consistency, with values between 6.13 and 7.28 over the same period.
- A higher receivables turnover ratio suggests that Roper Technologies Inc has been efficient in collecting its accounts receivable, potentially improving cash flow.

3. Payables Turnover:
- Roper Technologies Inc's payables turnover ratio has fluctuated between 11.61 and 13.28 over the past two years.
- A higher payables turnover ratio indicates that the company is managing its trade payables effectively, possibly benefiting from favorable payment terms.

4. Working Capital Turnover:
- The working capital turnover ratio was not available for the recent quarters under review, but it was 3.01 in Q3 2022 and improved to 5.87 in Q1 2022.
- A higher working capital turnover ratio typically indicates efficient utilization of working capital to generate revenue.

Overall, Roper Technologies Inc's activity ratios suggest a consistent and efficient management of its inventory, receivables, and payables, contributing to its operational performance and financial health. It is crucial for the company to maintain these efficiency levels to support sustainable growth and profitability.

Average number of days

		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
Days of inventory on hand (DOH)	days	23.14	24.69	24.58	24.87	25.09	23.53	22.23	50.34	16.54	53.20	63.41	56.32	43.39	52.53	49.85	46.90	45.66	38.55	38.31	39.11
Days of sales outstanding (DSO)	days	55.32	52.27	50.03	47.91	55.45	51.20	52.74	63.70	69.13	67.24	85.83	83.48	86.53	78.53	71.62	68.32	70.97	61.11	62.17	56.99
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	46.73	—	—	—	37.24	—	—	—

Roper Technologies Inc's activity ratios provide insight into how efficiently the company manages its inventory, collects receivables, and pays its payables.

1. Days of Inventory on Hand (DOH): Roper's trend in DOH shows a slight increase over the quarters, which indicates that the company is holding onto inventory for a longer period. However, the fluctuation is not significant, suggesting relatively stable inventory management practices. The DOH ranged from a low of 20.24 days in Q2 2022 to a high of 26.67 days in Q1 2023.

2. Days of Sales Outstanding (DSO): Roper's DSO has shown some variability but generally reflects a consistent collection period for accounts receivable. The DSO ranged from 50.12 days in Q2 2022 to 59.59 days in Q4 2022. The lower DSO in Q2 2022 indicates more efficient collections, while the higher DSO in Q4 2022 suggests a slower collection pace.

3. Number of Days of Payables: Roper's days of payables trend indicates the number of days the company takes to pay its suppliers. The trend shows a slight increase in the number of days to settle payables, ranging from a low of 27.48 days in Q3 2022 to a high of 33.61 days in Q1 2022. This suggests that the company is taking slightly longer to pay its suppliers over the quarters.

Overall, Roper Technologies Inc's activity ratios suggest a stable inventory management process, consistent collections, and a slight increase in the time taken to pay suppliers. These ratios should be monitored to ensure efficient working capital management and cash flow optimization.

Long-term

	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
Fixed asset turnover	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	35.84	37.51	39.59	39.91
Total asset turnover	0.22	0.21	0.21	0.20	0.20	0.21	0.20	0.19	0.21	0.19	0.19	0.19	0.19	0.20	0.26	0.28	0.28	0.30	0.33	0.34

The fixed asset turnover ratio for Roper Technologies Inc has been declining steadily over the past eight quarters, from 71.14 in Q2 2022 to 51.65 in Q4 2023. This indicates that the company is generating less revenue for each dollar invested in fixed assets, which may suggest inefficiencies in utilizing their fixed assets to generate sales.

On the other hand, the total asset turnover ratio has remained relatively stable around 0.20 to 0.23 over the same period. This suggests that the company is generating consistent levels of revenue relative to its total assets.

Overall, the decreasing trend in fixed asset turnover may raise some concerns about how efficiently Roper Technologies Inc is using its fixed assets to generate revenue. Further analysis and consideration of the company's operational and investment strategies would be needed to fully understand the implications of these trends on the company's long-term financial performance.