Roper Technologies Inc. Common Stock (ROP)

Cash conversion cycle

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	23.14	24.69	24.58	24.87	25.09	23.53	22.23	50.34	16.54	53.20	63.41	56.32	43.39	52.53	49.85	46.90	45.66	38.55	38.31	39.11
Days of sales outstanding (DSO)	days	55.32	52.27	50.03	47.91	55.45	51.20	52.74	63.70	69.13	67.24	85.83	83.48	86.53	78.53	71.62	68.32	70.97	61.11	62.17	56.99
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	46.73	—	—	—	37.24	—	—	—
Cash conversion cycle	days	78.46	76.96	74.61	72.78	80.54	74.73	74.97	114.04	85.67	120.44	149.24	139.80	83.19	131.06	121.47	115.21	79.39	99.66	100.48	96.10

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 variability over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 53.38 days, increasing from the previous quarter but remaining at a moderate level. This indicates that the company takes approximately 53.38 days to convert its investments in inventory and other resources into cash inflows from sales.

Compared to the same quarter in the previous year, there has been an overall improvement in the cash conversion cycle, as Q4 2022 had a higher value of 57.04 days. This suggests that Roper Technologies Inc has been managing its working capital more efficiently over time.

Q2 and Q3 of 2022 stood out as periods with relatively low cash conversion cycles, indicating a more efficient management of cash flows and working capital during those quarters. However, Q1 2022 and Q4 2022 showed longer cash conversion cycles, which may suggest challenges in managing working capital effectively during those periods.

Overall, while the cash conversion cycle of Roper Technologies Inc has fluctuated, the company appears to have made progress in optimizing its working capital management compared to the previous year. Continued monitoring and analysis of this metric will be crucial to ensure efficient utilization of resources and sustained financial performance.