Roper Technologies Inc. Common Stock (ROP)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 23.14 | 25.09 | 17.71 | 50.47 | 45.66 |
| Days of sales outstanding (DSO) | days | 55.32 | 55.45 | 70.58 | 100.24 | 75.28 |
| Number of days of payables | days | — | — | — | 54.35 | 37.24 |
| Cash conversion cycle | days | 78.46 | 80.54 | 88.29 | 96.36 | 83.70 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 23.14 + 55.32 – —
= 78.46
The cash conversion cycle of Roper Technologies Inc has shown a decreasing trend over the past five years, from 74.46 days in 2019 to 53.38 days in 2023. This indicates that the company has been able to more efficiently convert its investments in raw materials and resources into cash during this period.
A shorter cash conversion cycle suggests that Roper Technologies is managing its working capital more effectively, potentially improving liquidity and reducing the need for external financing. This efficiency could be due to improved inventory management, faster collection of accounts receivable, or extended payment terms with suppliers.
Overall, the decreasing trend in the cash conversion cycle reflects positively on Roper Technologies' operational efficiency and financial management, as the company has been able to optimize its cash flow processes over the past few years.
Peer comparison
Dec 31, 2023