Roper Technologies Inc. Common Stock (ROP)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	2,371,500	1,582,400	1,555,700	1,544,900
Interest expense (ttm)	US$ in thousands	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	186,200	184,900	184,500	182,600
Interest coverage		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	12.74	8.56	8.43	8.46

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,923,600K ÷ $164,700K
= 11.68

Roper Technologies Inc's interest coverage has shown a consistent upward trend over the past eight quarters. The company's interest coverage ratio, which measures its ability to meet interest payments on its debt obligations, has improved steadily from 7.08 in Q1 2022 to 11.60 in Q4 2023.

This indicates that Roper Technologies Inc has been generating a sufficient level of operating income to cover its interest expenses, with a notable increase in its capacity to service its debt obligations. The rising trend in interest coverage suggests that the company has been effectively managing its debt and operating efficiently to generate enough income to comfortably cover its interest payments.

Overall, the improvement in Roper Technologies Inc's interest coverage ratio signifies a stronger financial position and a reduced risk of default on its debt obligations, reflecting positively on the company's creditworthiness and financial stability.