Roper Technologies, Inc. (ROP)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	188,200	214,300	792,800	351,500	308,300
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	3,832,200	2,963,200	2,892,500	3,121,800	2,444,400
Cash ratio		0.05	0.07	0.27	0.11	0.13

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($188,200K + $—K) ÷ $3,832,200K
= 0.05

The cash ratio of Roper Technologies, Inc. has fluctuated over the past five years. In December 2020, the cash ratio was 0.13, indicating that the company had 13 cents of cash for every dollar of current liabilities. By December 2021, the cash ratio decreased to 0.11, suggesting a slight decrease in the company's ability to cover its short-term liabilities with cash.

However, in December 2022, the cash ratio significantly improved to 0.27, indicating a strong ability to meet short-term obligations with available cash. This improvement may suggest better cash management or increased liquidity for the company.

Subsequently, by December 2023, the cash ratio decreased to 0.07, showing a decline in the company's ability to cover current liabilities with cash. This decrease could be a result of changes in cash holdings or an increase in short-term liabilities.

Lastly, as of December 2024, the cash ratio further decreased to 0.05, signaling a continued decrease in the ability to meet short-term obligations with cash. This trend may raise concerns about the company's liquidity position and ability to manage short-term financial obligations effectively.