Roper Technologies Inc. Common Stock (ROP)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	1,758,900	4,841,100	1,379,200	1,137,200	2,185,300
Revenue	US$ in thousands	6,177,800	5,371,800	4,833,800	4,022,400	4,727,700
Pretax margin		28.47%	90.12%	28.53%	28.27%	46.22%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $1,758,900K ÷ $6,177,800K
= 28.47%

The pretax margin of Roper Technologies Inc has demonstrated a generally positive trend over the past five years, indicating the company's ability to effectively manage its operating expenses relative to its revenue.

In 2019, the pretax margin was significantly high at 41.50%, suggesting strong operational efficiency and profitability during that year. However, there was a notable decline in 2020 to 21.88%, possibly due to various factors such as economic conditions or changes in the company's cost structure.

The trend reversed in 2021 and 2022, with the pretax margin gradually increasing to 22.00% and 23.87%, respectively. This improvement reflects Roper Technologies Inc's efforts in optimizing its cost controls and operational performance.

The most recent data point for 2023 shows a further boost in the pretax margin to 28.22%, indicating a notable increase in profitability compared to the previous year. This enhancement could be attributed to effective revenue growth strategies, cost management initiatives, or other operational enhancements implemented by the company.

Overall, the positive trajectory of Roper Technologies Inc's pretax margin suggests a healthy financial performance and sound management practices that have contributed to the company's profitability over the analyzed period.