Roper Technologies Inc. Common Stock (ROP)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.21 | 0.22 | 0.30 | 0.38 | 0.26 |
| Debt-to-capital ratio | 0.25 | 0.27 | 0.38 | 0.46 | 0.33 |
| Debt-to-equity ratio | 0.33 | 0.37 | 0.62 | 0.86 | 0.49 |
| Financial leverage ratio | 1.61 | 1.68 | 2.05 | 2.29 | 1.91 |
The solvency ratios of Roper Technologies Inc indicate its ability to meet its long-term financial obligations and manage debt effectively.
The debt-to-assets ratio has been decreasing over the years, from 0.29 in 2019 to 0.22 in 2023. This downward trend shows an improvement in the company's ability to finance its assets through debt, indicating a stronger financial position.
Similarly, the debt-to-capital and debt-to-equity ratios also exhibit a decreasing trend, showing a decline in the proportion of debt in the company's capital structure over the years. This indicates a lower reliance on debt financing and a stronger equity base, which is generally viewed positively by investors and creditors.
The financial leverage ratio, which measures the proportion of total assets that are financed by debt, has also shown a decreasing trend from 2.29 in 2020 to 1.61 in 2023. This signifies that the company is becoming less leveraged and relying more on equity to support its operations.
Overall, the decreasing trend in solvency ratios for Roper Technologies Inc suggests an improvement in its financial health and ability to manage debt effectively, which could enhance its long-term sustainability and stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 11.68 | 26.16 | 6.90 | 6.20 | 12.74 |
Interest coverage is a financial ratio that indicates a company's ability to meet its interest payment obligations with its operating income. A higher interest coverage ratio is generally preferred as it suggests that the company is more capable of servicing its debt.
Analyzing the interest coverage ratio of Roper Technologies Inc over the past five years, we observe a generally upward trend from 2019 to 2023. In 2019, the interest coverage ratio was 8.03, and this ratio has steadily increased to 11.60 in 2023. This improvement indicates that the company's operating income is more than sufficient to cover its interest expenses, suggesting a stronger financial position and lower financial risk.
The interest coverage ratios in 2021 and 2022 were 6.75 and 7.92, respectively, showing a temporary dip in the company's ability to cover its interest obligations. However, the subsequent increase to 11.60 in 2023 indicates a significant improvement in Roper Technologies Inc's financial health.
Overall, the trend of increasing interest coverage ratios for Roper Technologies Inc signals a positive financial position and a stronger ability to meet its interest payment obligations.