Roper Technologies, Inc. (ROP)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,051,200	2,064,800	2,054,800	2,064,400	1,923,600	3,428,600	3,388,900	3,291,900	5,033,500	3,371,000	3,347,600	3,340,100	1,623,000	1,578,000	1,510,300	1,444,000	1,373,200	2,191,900	2,222,800	2,258,600
Interest expense (ttm)	US$ in thousands	9,800	57,100	213,200	180,500	164,700	168,400	167,300	177,200	192,400	194,300	211,200	226,000	234,000	242,000	246,000	234,000	218,800	203,700	190,300	187,900
Interest coverage		209.31	36.16	9.64	11.44	11.68	20.36	20.26	18.58	26.16	17.35	15.85	14.78	6.94	6.52	6.14	6.17	6.28	10.76	11.68	12.02

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,051,200K ÷ $9,800K
= 209.31

Based on the provided data, Roper Technologies, Inc.'s interest coverage ratio fluctuated significantly over the analyzed periods. The interest coverage ratio, which indicates the company's ability to meet its interest payments on outstanding debt, started at a relatively strong level of 12.02 in March 2020 and gradually declined, reaching a low of 6.17 in March 2021 and June 2021.

The decreasing trend in the interest coverage ratio during 2020 and the first half of 2021 may raise concerns about Roper Technologies' ability to cover its interest expenses with its earnings. However, the ratio showed a notable improvement in the second half of 2021, continuing into 2022. The interest coverage ratio surged to 26.16 in December 2022, indicating a significant strengthening of the company's ability to cover interest payments.

Subsequently, the interest coverage ratio remained relatively stable at elevated levels in the range of 18.58 to 20.36 from March 2023 to September 2023. However, a sharp increase to 209.31 in December 2024 could be an anomaly or an indication of a substantial improvement in Roper Technologies' financial health.

Overall, while the interest coverage ratio of Roper Technologies, Inc. has exhibited volatility, it seems to have improved significantly from the low levels seen in 2021, with some exceptional values noted in the data. It would be important to further investigate the reasons behind these fluctuations to assess the company's long-term financial stability.