Roper Technologies, Inc. (ROP)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	6.95	7.12	7.61	7.25	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
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	7.81	—	—	—
Working capital turnover	—	—	—	—	—	—	—	—	—	4.52	2.78	5.04	—	—	—	—	—	—	7.22	—

The activity ratios of Roper Technologies, Inc. provide insights into how efficiently the company manages its assets and operations.

1. Inventory Turnover: Roper's inventory turnover has shown some fluctuations over the years. It ranged from a low of 5.76 in June 2021 to a high of 22.07 in December 2021, indicating a significant improvement in how quickly the company sells its inventory. The ratios have since stabilized in the range of 14-16 times per year, suggesting efficient management of inventory levels.

2. Receivables Turnover: Roper's receivables turnover demonstrates a consistent trend of improvement, reflecting the company's ability to collect outstanding receivables efficiently. The ratio has increased gradually from 4.22 in December 2020 to around 7.12-7.61 in the most recent periods, indicating effective credit management and collection practices.

3. Payables Turnover: The payables turnover data is not available for analysis as the information is marked as "not applicable" for all periods. This may indicate the company's payment terms or practices do not lend themselves to an easy calculation of the payables turnover ratio.

4. Working Capital Turnover: Roper's working capital turnover has shown variability with periods of missing data. The ratio was 7.22 in June 2020, dropped significantly in the following years, and then recovered to around 4.52 in September 2022. The erratic nature of this ratio suggests changes in working capital management efficiency over time.

In summary, Roper Technologies, Inc. has efficiently managed its inventory and receivables turnover, signaling effective asset utilization and cash flow management. However, the lack of data for payables turnover and inconsistency in working capital turnover ratios may require further investigation to understand the company's overall efficiency in managing its working capital and payment cycle.

Average number of days

		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
Days of inventory on hand (DOH)	days	20.40	22.92	23.76	23.96	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
Days of sales outstanding (DSO)	days	52.50	51.26	47.95	50.37	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
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	46.73	—	—	—

In analyzing Roper Technologies, Inc.'s activity ratios, we look at the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH):
- Roper Technologies, Inc. had a range of DOH between 16.54 to 63.41 days over the period from December 31, 2021, to June 30, 2021. This indicates a significant fluctuation in the management of inventory levels.
- Notably, the company managed to decrease its DOH to 20.40 days by December 31, 2024, which could imply better inventory management practices and efficiency in the supply chain.

2. Days of Sales Outstanding (DSO):
- The DSO for Roper Technologies, Inc. ranged from 47.95 to 86.53 days from March 31, 2021, to December 31, 2020. A lower DSO is generally preferred as it indicates faster collection of accounts receivable.
- It is observed that the company improved its DSO, reaching 47.95 days by June 30, 2024. This improvement suggests efficient receivables management and better credit control.

3. Number of Days of Payables:
- The data shows that Roper Technologies, Inc. did not provide information on the Number of Days of Payables for most of the reporting periods, except for December 31, 2020, which was 46.73 days.
- The absence of data on payables days for subsequent periods makes it challenging to assess the company's payment practices and how it manages its outstanding obligations to suppliers.

In summary, Roper Technologies, Inc. demonstrated improvements in managing its inventory and accounts receivable turnover based on the provided data. However, the lack of information on payables days limits a comprehensive assessment of the company's overall working capital management efficiency.

Long-term

	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
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
Total asset turnover	0.22	0.21	0.22	0.21	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

Roper Technologies, Inc. demonstrates a fluctuating trend in its Fixed Asset Turnover ratio over the years, ranging from a low of 32.44 in September 2020 to a high of 65.71 in June 2022. The ratio indicates the efficiency with which the company is utilizing its fixed assets to generate sales.

On the other hand, the Total Asset Turnover ratio of Roper Technologies, Inc. has been relatively stable over the period, fluctuating within a narrow range between 0.19 to 0.22. This ratio reflects the company's ability to generate revenue relative to the size of its total asset base.

Both ratios are important in assessing the operational efficiency and asset utilization of the company. The fluctuations observed in the Fixed Asset Turnover ratio may reflect changes in the company's operations and capital expenditure decisions, while the stable Total Asset Turnover ratio suggests a consistent relationship between revenue generation and the total asset base. Overall, these ratios provide insight into Roper Technologies, Inc.'s long-term activity performance and efficiency in asset utilization.