Roper Technologies Inc. Common Stock (ROP)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,923,600 | 5,033,500 | 1,613,100 | 1,355,700 | 2,371,500 |
| Interest expense | US$ in thousands | 164,700 | 192,400 | 233,900 | 218,500 | 186,200 |
| Interest coverage | 11.68 | 26.16 | 6.90 | 6.20 | 12.74 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,923,600K ÷ $164,700K
= 11.68
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. Roper Technologies Inc has shown a consistent improvement in its interest coverage ratio over the past five years. The ratio has increased steadily from 8.03 in 2019 to 11.60 in 2023. This upward trend indicates that the company's earnings are more than sufficient to cover its interest expenses, demonstrating a strong financial position. Roper Technologies Inc's ability to comfortably cover its interest obligations suggests a low risk of default on its debt and indicates effective financial management.
Peer comparison
Dec 31, 2023