Roper Technologies, Inc. (ROP)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 0.40 | 0.50 | 0.67 | 0.78 | 0.72 |
| Quick ratio | 0.31 | 0.39 | 0.56 | 0.41 | 0.58 |
| Cash ratio | 0.05 | 0.07 | 0.27 | 0.11 | 0.13 |
Roper Technologies, Inc.'s liquidity ratios have shown a concerning trend over the past five years. The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has declined from 0.72 in 2020 to 0.40 in 2024. This indicates a weakening ability to meet its short-term obligations using current assets.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also decreased steadily from 0.58 in 2020 to 0.31 in 2024. This suggests a diminishing ability to meet immediate liabilities without relying on inventory.
The cash ratio, which evaluates the company's ability to cover its current liabilities using only its cash and cash equivalents, has fluctuated over the years but remained relatively low, ranging from 0.05 to 0.27. This indicates that Roper Technologies may have limited cash reserves to meet its short-term obligations.
Overall, based on these liquidity ratios, it appears that Roper Technologies, Inc. may face challenges in managing its short-term financial obligations, as its ability to cover current liabilities with current assets, liquid assets, and cash alone has been on a declining trend.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 72.90 | 78.46 | 80.54 | 88.29 | 96.36 |
The cash conversion cycle for Roper Technologies, Inc. has been improving over the years. From 96.36 days at the end of 2020, it decreased to 88.29 days by the end of 2021, further declining to 80.54 days by the end of 2022. By the end of 2023, the cash conversion cycle had reduced to 78.46 days, and it decreased even further to 72.90 days by the end of 2024. This indicates that Roper Technologies has been managing its operating cycle more efficiently, which could be a result of better inventory management, accounts receivable collection, and payable payment practices. A decreasing cash conversion cycle implies that the company is able to convert its investments in inventory and accounts receivable into cash more quickly, which is a positive sign for its liquidity and working capital management.