Roper Technologies Inc. Common Stock (ROP)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,177,800 | 5,371,800 | 4,833,800 | 4,022,400 | 4,727,700 |
| Receivables | US$ in thousands | 936,300 | 816,000 | 934,700 | 1,104,700 | 975,100 |
| Receivables turnover | 6.60 | 6.58 | 5.17 | 3.64 | 4.85 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,177,800K ÷ $936,300K
= 6.60
Based on the data provided, Roper Technologies Inc's receivables turnover has been relatively stable over the past five years. The receivables turnover ratio measures the efficiency of a company in collecting its accounts receivable during a specific period.
The increasing trend in the receivables turnover ratio from 2019 to 2023 indicates that the company has been improving its collections efficiency. A higher receivables turnover ratio suggests that the company is collecting its accounts receivable more frequently within a given period, which is generally a positive indicator of operational efficiency.
Roper Technologies Inc's receivables turnover ratio ranged from 4.91 to 6.28 over the past five years, with the highest turnover ratio of 6.28 recorded in 2023. This indicates that, on average, the company collected its accounts receivable approximately 6.28 times during the year.
Overall, the consistent and increasing trend in Roper Technologies Inc's receivables turnover ratio demonstrates effective management of accounts receivable and efficient collection practices, which is essential for maintaining healthy cash flow and liquidity.
Peer comparison
Dec 31, 2023