Roper Technologies Inc. Common Stock (ROP)
Total asset 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 |
| Total assets | US$ in thousands | 28,167,500 | 26,980,800 | 23,713,900 | 24,024,800 | 18,108,900 |
| Total asset turnover | 0.22 | 0.20 | 0.20 | 0.17 | 0.26 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,177,800K ÷ $28,167,500K
= 0.22
The total asset turnover ratio measures how efficiently a company utilizes its assets to generate revenue. From the data provided for Roper Technologies Inc over the past five years, we observe fluctuations in the total asset turnover ratio.
In 2019, the total asset turnover ratio was the highest at 0.30, indicating that Roper Technologies was generating $0.30 of revenue for every $1 of assets it held. This suggests strong asset utilization efficiency during that period.
However, in the subsequent years, the total asset turnover ratio decreased. In 2020, the ratio fell slightly to 0.23 and decreased further to 0.24 in 2021. This decline may indicate a decrease in revenue generated per dollar of assets, implying potential inefficiencies in asset utilization during these years.
The ratio dropped more significantly to 0.20 in 2022, signifying a notable decline in asset efficiency. This could be a cause for concern as it suggests that Roper Technologies may not be effectively leveraging its assets to drive revenue growth during that year.
In 2023, the total asset turnover ratio improved slightly to 0.22, which indicates a modest increase in asset efficiency compared to the previous year, but it remains below the levels observed in 2019 and 2021.
Overall, the fluctuations in Roper Technologies Inc's total asset turnover ratio over the five-year period suggest varying levels of asset utilization efficiency. Further analysis of the company's operations and strategies may be required to understand the factors influencing these changes and to assess the company's overall financial performance.
Peer comparison
Dec 31, 2023