Stock Analysis on Net
Stock Analysis on Net

Roper Technologies Inc. (NASDAQ:ROP)

This company has been moved to the archive! The financial data has not been updated since November 2, 2023.

Analysis of Inventory

Microsoft Excel

Inventory Disclosure

Roper Technologies Inc., balance sheet: inventory

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Raw materials and supplies 60,600 112,700 128,400 125,100 120,300
Work in process 24,900 30,200 28,200 30,900 26,200
Finished products 31,300 69,300 82,200 76,000 74,600
Inventory reserves (5,500) (36,100) (40,400) (33,400) (30,300)
Inventories 111,300 176,100 198,400 198,600 190,800

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The inventory data over the five-year period shows notable shifts in both the composition and total values. Overall, the total inventory levels decreased from US$ 190,800 thousand at the end of 2018 to US$ 111,300 thousand by the end of 2022, indicating a significant reduction in inventory holdings.

Raw materials and supplies
This category peaked in 2020 at US$ 128,400 thousand before declining sharply to US$ 60,600 thousand by the end of 2022. This represents a reduction of more than 50% from its highest level, suggesting a strategic move to lower raw materials inventory or improved supply chain efficiency.
Work in process
The work in process inventory fluctuated moderately, rising from US$ 26,200 thousand in 2018 to US$ 30,200 thousand in 2021, and then decreasing to US$ 24,900 thousand in 2022. This pattern suggests some variability in production flow but overall a slight net decline over the period.
Finished products
Finished goods inventory showed an increase through 2020, reaching US$ 82,200 thousand, followed by a continual decrease to US$ 31,300 thousand by 2022. This decline may indicate a reduction in stockpiled finished products or stronger sales turnover towards the end of the period.
Inventory reserves
Inventory reserves, reflected as negative values, grew in absolute terms from -US$ 30,300 thousand in 2018 to a peak of -US$ 40,400 thousand in 2020, then decreased sharply to -US$ 5,500 thousand in 2022. This significant reduction in reserves suggests either a reassessment leading to lower allowance for obsolete or damaged inventory or improved inventory quality and management.
Total inventories
The combined inventories remained relatively stable around US$ 190,000 thousand from 2018 to 2020 but then steadily decreased by nearly 44% to US$ 111,300 thousand in 2022. This downturn reflects the combined effects of reductions seen across raw materials, finished products, and inventory reserves.

In summary, the data demonstrates a strategic reduction in overall inventory levels over the observed years, particularly in raw materials and finished goods. The sharp decrease in inventory reserves in 2022 further underscores improved inventory management or asset quality. These trends may enhance liquidity and reduce holding costs, although the impact on operational capacity would require further assessment.