Roper Technologies, Inc. (ROP)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 2,051,200 2,064,800 2,054,800 2,064,400 1,923,600 3,428,600 3,388,900 3,291,900 5,033,500 3,371,000 3,347,600 3,340,100 1,623,000 1,578,000 1,510,300 1,444,000 1,373,200 2,191,900 2,222,800 2,258,600
Long-term debt US$ in thousands 6,579,900 7,677,600 6,923,900 7,222,300 5,830,600 6,379,000 5,966,300 5,964,400 5,962,500 5,960,600 6,657,100 6,654,800 7,122,600 7,529,900 8,199,500 8,571,800 9,061,400 9,101,200 5,263,800 4,674,200
Total stockholders’ equity US$ in thousands 18,867,600 18,515,500 18,139,000 17,797,600 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
Return on total capital 8.06% 7.88% 8.20% 8.25% 8.26% 14.64% 14.92% 14.76% 22.88% 17.01% 16.42% 16.53% 8.69% 8.36% 7.83% 7.47% 7.03% 11.38% 14.68% 15.83%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,051,200K ÷ ($6,579,900K + $18,867,600K)
= 8.06%

Roper Technologies, Inc.'s return on total capital has exhibited some fluctuations over the reported periods. The ratio stood at 15.83% as of March 31, 2020, showing a healthy return. However, it saw a slight decline to 14.68% by June 30, 2020, and further decreased to 11.38% by September 30, 2020. Throughout 2021 and the first half of 2022, the return on total capital remained relatively stable, hovering around 7-8%.

Notably, there was a significant improvement in return on total capital from December 31, 2022, to March 31, 2023, reaching 22.88%. However, this high was not sustained in the subsequent periods, as the ratio dipped back to the single digits by the end of 2024, ranging between 7.88% and 8.25%.

Overall, Roper Technologies' return on total capital has shown variability, with some periods of stronger returns followed by periods of lower performance. Investors and analysts may track this metric closely to assess the company's efficiency in generating returns from its total capital base.