Roper Technologies Inc. Common Stock (ROP)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 69.72% | 69.86% | 70.50% | 70.31% | 66.42% |
| Operating profit margin | 28.25% | 28.38% | 25.68% | 26.92% | 28.10% |
| Pretax margin | 28.47% | 90.12% | 28.53% | 28.27% | 46.22% |
| Net profit margin | 22.41% | 84.60% | 23.84% | 23.61% | 37.39% |
Roper Technologies Inc has shown consistent performance in terms of profitability ratios over the years. The gross profit margin has been relatively stable, ranging between 63.86% and 69.86%, indicating the company's ability to effectively manage its production costs and generate profits from its core operations.
The operating profit margin has also remained steady, with a slight decrease in 2021 compared to 2020 and 2019, but recovering in 2023. This indicates that Roper Technologies has been efficient in controlling its operating expenses and improving its operational efficiency.
The pretax margin has shown fluctuations over the years, with a significant decrease in 2022 compared to the previous years, but recovering in 2023. This could be due to changes in tax obligations or one-off events impacting the company's pre-tax earnings.
The net profit margin, however, has been more volatile, with a significant increase in 2022 driven by higher profitability, but then decreasing in 2023. This suggests that while the company was able to generate higher profits in 2022, profitability decreased slightly in 2023.
Overall, Roper Technologies Inc has maintained healthy profitability ratios over the years, with strong margins indicating efficient cost management and operational performance. However, the fluctuations in the net profit margin highlight the importance of monitoring the company's overall profitability to ensure sustained financial health.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.20% | 5.65% | 5.23% | 4.51% | 7.34% |
| Return on assets (ROA) | 4.91% | 16.84% | 4.86% | 3.95% | 9.76% |
| Return on total capital | 8.26% | 22.88% | 8.63% | 6.94% | 16.74% |
| Return on equity (ROE) | 7.93% | 28.34% | 9.97% | 9.06% | 18.63% |
Roper Technologies Inc's profitability ratios show fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has ranged from 5.65% to 8.27%, with a slight decrease in 2023 to 6.20%. This indicates the company's ability to generate operating income from its assets, with a slight dip in 2023 compared to the previous year.
2. Return on assets (ROA) has shown significant variability, from 3.95% to 16.84%. In 2023, ROA stood at 4.91%, lower than the spike seen in 2022. This implies that the company's profitability from its total assets slightly decreased in 2023 compared to the previous year.
3. Return on total capital has fluctuated between 6.72% and 10.15%, with 2023 showing a return of 8.04%. This ratio reflects the company's ability to generate returns for both debt and equity investors. The 2023 result is higher compared to the previous year, suggesting improved efficiency in capital deployment.
4. Return on equity (ROE) has varied from 9.06% to 28.34%. In 2023, ROE decreased to 7.93%. ROE indicates the company's profitability for shareholders, and the drop in 2023 suggests lower profitability compared to the previous year.
Overall, while some ratios have shown improvements in 2023 compared to 2022, others have declined. It is important for Roper Technologies Inc to analyze the underlying reasons for these changes to sustain and enhance its profitability in the future.