Roper Technologies, Inc. (ROP)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	1,996,800	1,923,600	5,033,500	1,613,100	1,355,700
Interest expense	US$ in thousands	9,800	164,700	192,400	233,900	218,500
Interest coverage		203.76	11.68	26.16	6.90	6.20

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,996,800K ÷ $9,800K
= 203.76

The interest coverage ratio of Roper Technologies, Inc. has shown a varying trend over the years. In December 2020, the interest coverage ratio was 6.20, indicating that the company's operating income could cover its interest payments 6.20 times. This ratio slightly improved to 6.90 by December 2021, reflecting a slightly stronger ability to meet interest obligations.

However, there was a significant increase in the interest coverage ratio to 26.16 by December 2022, suggesting a substantial improvement in the company's ability to cover interest expenses during that period. This surge indicates that Roper Technologies experienced a significant increase in its operating income relative to its interest payments.

In December 2023, the interest coverage ratio declined to 11.68, although it remained at a reasonable level, indicating that the company's operating income was still sufficiently robust to cover its interest expenses. Notably, the ratio significantly spiked to 203.76 by December 2024, indicating a substantial increase in Roper Technologies' ability to cover its interest payments, possibly due to a significant increase in operating income or a decrease in interest expenses.

Overall, the varying trend in Roper Technologies, Inc.'s interest coverage ratio demonstrates fluctuations in the company's ability to meet its interest obligations over the years, with notable improvements in some periods and slight declines in others.