Roper Technologies, Inc. (ROP)

Debt-to-equity ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
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
Debt-to-equity ratio		0.35	0.33	0.37	0.62	0.86

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,579,900K ÷ $18,867,600K
= 0.35

The debt-to-equity ratio of Roper Technologies, Inc. has displayed a declining trend over the past five years. Starting at 0.86 in December 31, 2020, the ratio has consistently decreased to 0.62 in December 31, 2021, further to 0.37 in December 31, 2022, then to 0.33 in December 31, 2023, and slightly increased to 0.35 by December 31, 2024.

This decreasing pattern suggests that Roper Technologies has been reducing its reliance on debt to finance its operations compared to equity, which can be seen as a positive indication of the company's financial health and risk management strategy. A lower debt-to-equity ratio typically signifies lower financial risk and greater financial stability within an organization. It also indicates a strong ability to repay obligations using internal resources rather than external borrowing.

Overall, the declining trend in Roper Technologies' debt-to-equity ratio reflects a prudent approach to managing financial leverage and suggests a healthy balance between debt and equity in the company's capital structure.