Roper Technologies, Inc. (ROP)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	7,039,200	6,177,800	5,371,800	4,833,800	4,022,400
Receivables	US$ in thousands	1,012,400	936,300	816,000	934,700	1,104,700
Receivables turnover		6.95	6.60	6.58	5.17	3.64

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $7,039,200K ÷ $1,012,400K
= 6.95

The receivables turnover ratio for Roper Technologies, Inc. has shown a consistent upward trend over the past few years, indicating an improvement in the company's efficiency in collecting receivables from customers.

From 2020 to 2024, the receivables turnover ratio increased steadily from 3.64 to 6.95. This suggests that the company has been able to collect its accounts receivable more frequently and quickly over the period, which is a positive sign of effective credit and collection management.

A higher receivables turnover ratio generally implies that the company is able to convert its accounts receivable into cash more rapidly, which can help improve liquidity and cash flow. It also indicates that Roper Technologies may have implemented better credit policies or enhanced collection procedures, leading to a more efficient use of its working capital.

Overall, the increasing trend in Roper Technologies' receivables turnover ratio reflects positively on the company's ability to manage its receivables effectively and generate cash from its sales operations.