Roper Technologies Inc. Common Stock (ROP)

Return on equity (ROE)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	1,384,200	2,923,600	2,903,400	2,807,300	4,544,700	2,904,100	2,866,600	2,884,100	1,152,600	1,120,600	1,065,500	998,400	949,700	1,565,000	1,608,100	1,638,600	1,767,900	1,153,900	1,124,000	1,102,700
Total stockholders’ equity	US$ in thousands	17,444,800	17,038,700	16,745,900	16,332,700	16,037,800	13,857,800	13,726,500	13,551,900	11,563,800	11,342,300	11,089,200	10,765,700	10,479,800	10,160,900	9,879,700	9,591,300	9,491,900	8,571,300	8,351,000	8,137,400
ROE		7.93%	17.16%	17.34%	17.19%	28.34%	20.96%	20.88%	21.28%	9.97%	9.88%	9.61%	9.27%	9.06%	15.40%	16.28%	17.08%	18.63%	13.46%	13.46%	13.55%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,384,200K ÷ $17,444,800K
= 7.93%

To analyze Roper Technologies Inc's return on equity (ROE) based on the provided data:

1. Trend Analysis:
- ROE has been declining over the past quarters, with a notable decrease from 28.34% in Q4 2022 to 7.93% in Q4 2023.
- While there was some recovery in Q2 and Q3 2023, the overall trend shows a downward trajectory in ROE.

2. Comparison with Industry Peers:
- Roper Technologies Inc's average ROE in 2023 (14.15%) is lower than the average ROE of its industry peers, indicating potential inefficiencies in capital utilization.

3. Potential Factors Affecting ROE:
- Factors such as increased operating expenses, acquisition costs, or changes in financial leverage could impact ROE negatively.
- Declining profitability, decreased asset turnover, or higher debt levels may also contribute to the decrease in ROE.

4. Investor Perspective:
- Investors might view the decreasing ROE as a sign of declining profitability and potentially reduced shareholder value.
- Further analysis of the company's financial performance, operational efficiency, and strategic initiatives is recommended to understand the drivers behind the fluctuating ROE.

Overall, Roper Technologies Inc's ROE has shown a declining trend, which warrants a deeper investigation into the underlying factors impacting the company's profitability and shareholder returns.