Roper Technologies Inc. Common Stock (ROP)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	214,300	792,800	351,500	308,300	709,700
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	936,300	816,000	934,700	1,104,700	975,100
Total current liabilities	US$ in thousands	2,963,200	2,892,500	3,121,800	2,444,400	2,397,400
Quick ratio		0.39	0.56	0.41	0.58	0.70

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($214,300K + $—K + $936,300K) ÷ $2,963,200K
= 0.39

The quick ratio of Roper Technologies Inc has shown a decreasing trend over the past five years. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, was 0.46 as of December 31, 2023, compared to 0.63 in 2022, 0.47 in 2021, 0.64 in 2020, and 0.75 in 2019.

A quick ratio below 1 indicates that Roper Technologies Inc may have difficulty meeting its short-term obligations with its quick assets alone. The decreasing trend in the quick ratio raises concerns about the company's liquidity position and ability to cover its current liabilities with readily available assets.

Investors and creditors may view the declining quick ratio as a sign of potential liquidity challenges for Roper Technologies Inc, necessitating further analysis of the company's cash flow management and short-term liquidity strategies.