Roper Technologies, Inc. (ROP)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	20.40	22.92	23.76	23.96	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
Days of sales outstanding (DSO)	days	52.50	51.26	47.95	50.37	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
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	46.73	—	—	—
Cash conversion cycle	days	72.90	74.18	71.71	74.34	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

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 20.40 + 52.50 – —
= 72.90

The cash conversion cycle of Roper Technologies, Inc. has shown fluctuating trends over the past few years. From March 31, 2020, to June 30, 2021, the cash conversion cycle increased steadily, indicating a longer period required to convert investments in inventory and other resources into cash flows from sales.

However, from June 30, 2021, to September 30, 2022, there was a notable improvement as the cash conversion cycle decreased significantly, indicating enhanced efficiency in managing working capital and converting it into cash. This trend continued for the next few quarters until December 31, 2023, with the cash conversion cycle staying relatively stable with minor fluctuations.

From March 31, 2024, there was a slight increase in the cash conversion cycle, suggesting that the company may be taking longer to convert sales back into cash, potentially due to changes in business operations or market conditions. Overall, a lower cash conversion cycle is favorable for a company as it signifies quicker conversion of investments into cash and efficient management of working capital.