Roper Technologies, Inc. (ROP)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,996,800 | 1,923,600 | 5,033,500 | 1,613,100 | 1,355,700 |
| Long-term debt | US$ in thousands | 6,579,900 | 5,830,600 | 5,962,500 | 7,122,600 | 9,061,400 |
| Total stockholders’ equity | US$ in thousands | 18,867,600 | 17,444,800 | 16,037,800 | 11,563,800 | 10,479,800 |
| Return on total capital | 7.85% | 8.26% | 22.88% | 8.63% | 6.94% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,996,800K ÷ ($6,579,900K + $18,867,600K)
= 7.85%
Based on the data provided, Roper Technologies, Inc.'s return on total capital has shown fluctuating performance over the years.
In December 2020, the return on total capital was 6.94%, which increased to 8.63% by December 2021. The significant jump to 22.88% by December 2022 indicates a strong performance in utilizing its total capital to generate returns. However, there was a decrease to 8.26% by December 2023 and a slight decline to 7.85% by December 2024.
The overall trend suggests some volatility in the company's ability to generate returns on its total capital, with a peak in 2022 followed by some moderation in the subsequent years. It may be important for stakeholders to further investigate the factors contributing to these fluctuations to assess the company's capital allocation decisions and operational efficiency.
Peer comparison
Dec 31, 2024