Roper Technologies, Inc. (ROP)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.21 | 0.24 | 0.23 | 0.24 | 0.21 | 0.23 | 0.22 | 0.22 | 0.22 | 0.24 | 0.26 | 0.26 | 0.30 | 0.32 | 0.34 | 0.36 | 0.38 | 0.38 | 0.27 | 0.26 |
| Debt-to-capital ratio | 0.26 | 0.29 | 0.28 | 0.29 | 0.25 | 0.27 | 0.26 | 0.27 | 0.27 | 0.30 | 0.33 | 0.33 | 0.38 | 0.40 | 0.43 | 0.44 | 0.46 | 0.47 | 0.35 | 0.33 |
| Debt-to-equity ratio | 0.35 | 0.41 | 0.38 | 0.41 | 0.33 | 0.37 | 0.36 | 0.37 | 0.37 | 0.43 | 0.48 | 0.49 | 0.62 | 0.66 | 0.74 | 0.80 | 0.86 | 0.90 | 0.53 | 0.49 |
| Financial leverage ratio | 1.66 | 1.70 | 1.65 | 1.68 | 1.61 | 1.65 | 1.64 | 1.66 | 1.68 | 1.76 | 1.85 | 1.89 | 2.05 | 2.09 | 2.15 | 2.22 | 2.29 | 2.33 | 1.94 | 1.89 |
The solvency ratios of Roper Technologies, Inc. provide insight into the company's ability to meet its long-term debt obligations.
1. Debt-to-assets ratio: This ratio shows the proportion of the company's assets financed by debt. Roper Technologies' debt-to-assets ratio has been showing a decreasing trend from 0.26 as of March 31, 2020, to 0.21 by December 31, 2024. This indicates that the company has been reducing its reliance on debt to fund its assets over the years.
2. Debt-to-capital ratio: This ratio reflects the amount of capital that comes from debt financing. Roper Technologies' debt-to-capital ratio has also been declining gradually, from 0.33 on March 31, 2020, to 0.26 by December 31, 2024. This indicates an improving capital structure with less reliance on debt.
3. Debt-to-equity ratio: The debt-to-equity ratio measures the amount of debt used to finance the company's operations compared to shareholders' equity. Roper Technologies' debt-to-equity ratio has shown a decreasing trend, indicating a decreasing reliance on debt financing. The ratio decreased from 0.49 on March 31, 2020, to 0.35 by December 31, 2024.
4. Financial leverage ratio: This ratio compares the company's total assets to its equity. Roper Technologies' financial leverage ratio has been decreasing over the years, indicating a stronger equity position relative to assets. The ratio decreased from 1.89 on March 31, 2020, to 1.66 by December 31, 2024.
Overall, the decreasing trends in the solvency ratios suggest that Roper Technologies has been effectively managing its debt levels and improving its financial structure by reducing debt reliance and strengthening its equity position over the years.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio of Roper Technologies, Inc. has fluctuated over the period under review.
From March 31, 2020, to December 31, 2021, the interest coverage ratio ranged between 6.17 to 12.02, indicating the company's ability to cover its interest expenses with its earnings. However, there was a notable decrease in the ratio to 6.14 by June 30, 2021, and further down to 6.52 by September 30, 2021, which may raise concerns about its ability to meet interest obligations.
From March 31, 2022, onwards, the interest coverage ratio improved significantly, reaching 26.16 by December 31, 2022. This sharp increase suggests a substantial increase in the company's earnings relative to its interest expenses, indicating a healthier financial position.
However, the interest coverage ratio experienced fluctuations in the following periods, with values ranging from 9.64 to as high as 209.31 by December 31, 2024. The substantial increase seen in the last period may be due to a combination of increased earnings and lower interest expenses but such a spike should be analyzed further to ensure it is sustainable and not influenced by any one-off events.
Overall, the interest coverage ratio of Roper Technologies, Inc. displays variability, with periods of strengths and weakness. Monitoring this ratio over time is crucial to gauge the company's ability to make interest payments from its earnings effectively.