Roper Technologies, Inc. (ROP)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.21 | 0.21 | 0.22 | 0.30 | 0.38 |
| Debt-to-capital ratio | 0.26 | 0.25 | 0.27 | 0.38 | 0.46 |
| Debt-to-equity ratio | 0.35 | 0.33 | 0.37 | 0.62 | 0.86 |
| Financial leverage ratio | 1.66 | 1.61 | 1.68 | 2.05 | 2.29 |
Roper Technologies, Inc.'s solvency ratios demonstrate a positive trend over the years, indicating a strong position in terms of debt management and financial leverage. The Debt-to-assets ratio has decreased from 0.38 in 2020 to 0.21 in 2024, reflecting a decreasing reliance on debt to finance assets. Similarly, the Debt-to-capital ratio has also shown a declining trend from 0.46 in 2020 to 0.26 in 2024, signifying a decreasing proportion of debt in the company's capital structure.
Furthermore, the Debt-to-equity ratio has seen a significant reduction from 0.86 in 2020 to 0.35 in 2024, indicating a substantial decrease in the company's reliance on debt relative to equity. The Financial leverage ratio has also improved from 2.29 in 2020 to 1.66 in 2024, highlighting a decreasing financial risk and a more efficient use of debt in the company's capital.
Overall, the decreasing trend in all solvency ratios suggests that Roper Technologies, Inc. has been effectively managing its debt levels and improving its financial leverage position over the years, which is a positive indicator of the company's long-term solvency and financial stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 203.76 | 11.68 | 26.16 | 6.90 | 6.20 |
The interest coverage ratio for Roper Technologies, Inc. has shown a generally increasing trend over the years, reflecting the company's ability to comfortably meet its interest obligations.
At the end of December 31, 2020, the interest coverage ratio was 6.20, indicating that the company generated 6.20 times the amount of Earnings before Interest and Taxes (EBIT) needed to cover its interest expenses for that period.
By December 31, 2021, the ratio improved to 6.90, further demonstrating the company's ability to manage its interest payment obligations effectively.
In December 31, 2022, there was a significant increase in the interest coverage ratio to 26.16, signifying a notable improvement in the company's financial position and its capacity to handle interest costs comfortably.
Although there was a slight decrease in the ratio to 11.68 by December 31, 2023, the figure still indicates a strong ability to cover interest expenses adequately.
Notably, the interest coverage ratio surged to a remarkable 203.76 by December 31, 2024, demonstrating a substantial increase in the company's ability to fulfill its interest payment obligations, indicating a strong financial position and robust earnings relative to its interest costs.
Overall, the trend in Roper Technologies, Inc.'s interest coverage ratio showcases a consistent improvement, which is favorable for the company's financial health and stability.