Roper Technologies Inc. Common Stock (ROP)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	1,923,600	5,033,500	1,613,100	1,355,700	2,371,500
Long-term debt	US$ in thousands	5,830,600	5,962,500	7,122,600	9,061,400	4,673,100
Total stockholders’ equity	US$ in thousands	17,444,800	16,037,800	11,563,800	10,479,800	9,491,900
Return on total capital		8.26%	22.88%	8.63%	6.94%	16.74%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,923,600K ÷ ($5,830,600K + $17,444,800K)
= 8.26%

The return on total capital for Roper Technologies Inc has shown fluctuation over the past five years. In 2023, the return on total capital improved to 8.04%, a modest increase from 6.72% in 2022. This marks a positive trend following the previous year's decline from 8.11% in 2021 to 7.14% in 2020. Notably, the return on total capital was at its highest in 2019 at 10.15%.

Overall, the return on total capital for Roper Technologies Inc indicates the company's ability to generate profits from its total invested capital. It is important for investors to monitor this ratio over time to assess the company's efficiency in utilizing both debt and equity in generating returns.