Roper Technologies, Inc. (ROP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 69.30% | 69.72% | 69.86% | 70.50% | 70.31% |
| Operating profit margin | 28.37% | 28.25% | 28.38% | 25.68% | 26.92% |
| Pretax margin | 27.95% | 28.47% | 90.12% | 28.53% | 28.27% |
| Net profit margin | 22.01% | 22.41% | 84.60% | 23.84% | 23.61% |
Roper Technologies, Inc. has maintained a consistently high gross profit margin over the past five years, with figures ranging from 69.30% to 70.50%. This indicates the company's ability to efficiently manage its production costs and pricing strategies.
In terms of operating profit margin, Roper Technologies, Inc. experienced a slight decrease in 2021, followed by an increase in the subsequent years, reaching a peak of 28.37% in 2024. This suggests improvements in operational efficiency and cost control measures within the organization.
The pretax margin for Roper Technologies, Inc. fluctuated notably from 2020 to 2022, with a significant surge in 2022 to 90.12%, which was likely due to certain one-time events or accounting adjustments. However, in the following years, the pretax margin stabilized around 28-29%, indicating a more sustainable level of profitability before taxes.
The net profit margin for Roper Technologies, Inc. also exhibited variability, with a significant spike in 2022 to 84.60%, possibly driven by unique circumstances impacting the bottom line. Subsequently, the net profit margin returned to lower levels in the range of 22-23% in the last two years, reflecting the company's ability to generate profits after all expenses are considered.
Overall, Roper Technologies, Inc. has shown strong profitability levels across its various margin metrics over the years, indicating effective cost management and profitability strategies. However, the fluctuating nature of some margins highlights the importance of considering the underlying factors that may have influenced the financial performance in certain periods.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.37% | 6.20% | 5.65% | 5.23% | 4.51% |
| Return on assets (ROA) | 4.94% | 4.91% | 16.84% | 4.86% | 3.95% |
| Return on total capital | 7.85% | 8.26% | 22.88% | 8.63% | 6.94% |
| Return on equity (ROE) | 8.21% | 7.93% | 28.34% | 9.97% | 9.06% |
Roper Technologies, Inc. has shown a steady improvement in its profitability ratios over the years based on the provided data.
1. Operating return on assets (Operating ROA) has increased from 4.51% in 2020 to 6.37% in 2024, indicating that the company has been able to generate more operating income from its assets over time.
2. Return on assets (ROA) fluctuated over the years, with a notable increase to 16.84% in 2022 before stabilizing around 4.91% - 4.94% in 2023 and 2024. This indicates that the company's overall efficiency in generating profits from its total assets experienced ups and downs.
3. Return on total capital also showed a significant increase from 6.94% in 2020 to 22.88% in 2022, displaying a strong performance in utilizing its total capital to generate returns. However, there was a slight decline in the ratio over the following years, settling at 7.85% in 2024.
4. Return on equity (ROE) peaked at 28.34% in 2022, illustrating impressive profitability from shareholders' equity. The ratio then decreased in the subsequent years but remained relatively stable around 7.93% - 8.21%, indicating a consistent return to equity holders.
Overall, the profitability ratios of Roper Technologies, Inc. demonstrate a positive trend in effectively utilizing assets, capital, and equity to generate returns for its shareholders.