Roper Technologies Inc. (NASDAQ:ROP)

Land

The value of land remained relatively stable from 2018 through 2021, fluctuating slightly between 2,200 and 2,300 thousand US dollars. However, in 2022 there was a significant decline to 1,000 thousand US dollars, representing a major reduction in the land asset base.

Buildings

Building values increased from 76,700 thousand US dollars in 2018 to a peak of 87,100 thousand US dollars in 2020. After 2020, there was a marked decrease, falling to 77,500 thousand in 2021 and sharply dropping further to 43,000 thousand in 2022. This indicates a substantial divestiture or impairment in building-related assets over the most recent two years.

Machinery and other equipment

Values for machinery and other equipment remained stable around 218,000 thousand US dollars in 2018 and 2019, and increased slightly to 223,300 thousand in 2020. However, a sharp decline occurred in subsequent years, with values plummeting to 164,400 thousand in 2021 and further to 113,200 thousand in 2022. This trend suggests a significant reduction in machinery and equipment, possibly due to disposals, retirements, or revaluations.

Computer equipment

Computer equipment exhibited an increasing trend from 79,400 thousand in 2018 to 117,800 thousand in 2020, maintaining a relatively stable level through 2021 at 117,500 thousand. In 2022, a slight decrease to 107,500 thousand occurred, reflecting a minor contraction in this asset category after steady growth.

Software

Software assets steadily increased from 64,400 thousand in 2018 to a peak of 80,900 thousand in 2020, followed by a gradual decline to 71,900 thousand by 2022. This pattern may indicate initial investment growth with subsequent amortization or reclassification impacts reducing net value.

Property, plant and equipment, cost

The total cost of property, plant, and equipment rose steadily from 440,700 thousand US dollars in 2018 to a high of 511,400 thousand in 2020, then decreased significantly to 439,000 thousand in 2021 and further to 336,600 thousand in 2022. This reflects a trend of asset appreciation followed by notable asset disposals, retirements, or write-downs in the most recent years.

Accumulated depreciation

Accumulated depreciation consistently increased in absolute terms from -312,000 thousand US dollars in 2018 to -370,800 thousand in 2020, indicating ongoing asset aging and usage. However, depreciation decreased in magnitude in 2021 to -336,200 thousand and further to -251,300 thousand in 2022, which is consistent with the reduction in total asset base and may also reflect disposals of fully or partially depreciated assets.

Property, plant and equipment, net

The net value of property, plant, and equipment increased from 128,700 thousand US dollars in 2018 to 140,600 thousand in 2020, indicating growth in net asset value during this period. Subsequently, there was a decline to 102,800 thousand in 2021 and a further reduction to 85,300 thousand in 2022. This declining trend highlights the impact of reduced asset cost and accumulated depreciation adjustments, suggesting a contraction in the company's net fixed assets in recent years.

Average Age Ratio

The average age ratio displayed relative stability from 2018 to 2019, slightly declining from 71.15% to 70.86%. Subsequently, it increased to 72.83% in 2020 and continued a notable upward trajectory, peaking at 76.97% in 2021. In 2022, a moderate decline was observed as the ratio decreased to 74.88%. This trend suggests the overall asset base aged progressively over the period but experienced a slight rejuvenation or disposal of older assets near the end of the timeline.

Estimated Total Useful Life

The estimated total useful life of property, plant, and equipment began at 9 years in 2018, increased to 10 years in 2019 and 2020, then reverted to 9 years in 2021 and 2022. This fluctuation might indicate revisions in asset lifespan assessments, possibly reflecting changes in asset types, utilization intensity, or maintenance practices.

Estimated Age

The estimated age, representing time elapsed since purchase, rose from 6 years in 2018 to 7 years by 2019 and remained constant through to 2022. This suggests that new asset acquisitions balanced out asset retirements, maintaining a steady average age among the equipment.

Estimated Remaining Life

The estimated remaining life declined from 3 years in 2018 through to 2020, then decreased further to 2 years in both 2021 and 2022. This decline indicates a shortening of the residual expected service period of assets, aligning with the increasing average age ratio and consistent estimated age, potentially signaling a need for capital reinvestment in coming periods.

The analysis of the property, plant, and equipment (PP&E) data reveals several key trends over the five-year period ending in 2022. The cost of property, plant, and equipment shows a general decline, decreasing from $440.7 million in 2018 to $336.6 million in 2022. This decline is particularly marked in the last two years, indicating possible asset disposals, reduced capital expenditures, or revaluation adjustments.

Accumulated depreciation presents a non-linear pattern. It increased steadily from $312 million in 2018 to a peak of $370.8 million in 2020, suggesting ongoing asset aging and utilization. However, a notable decrease thereafter brings the accumulated depreciation down to $251.3 million by 2022. This reduction may indicate asset retirements, impairments, or changes in depreciation methods or estimates.

Land value remains relatively stable but low compared to total PP&E, with a minor increase from $2.2 million in 2018 to $2.3 million in 2020, followed by declines to $1 million by 2022. This fluctuation may reflect asset sales or reclassifications affecting land holdings.

The average age ratio, expressed as a percentage, generally increases over the period, moving from 71.15% in 2018 to a peak of 76.97% in 2021 before slightly declining to 74.88% in 2022. This upward trend suggests that, on average, the company's PP&E is aging, which could signal reduced recent investment in new assets or slower asset turnover. The slight decrease in 2022 might imply some rejuvenation of the asset base or reassessment of asset lives.

Property, Plant, and Equipment Cost

Declined by approximately 24% over five years, with notable reduction in 2021-2022.

Accumulated Depreciation

Increased until 2020 then decreased significantly by 2022, suggesting changes in asset composition or depreciation accounting.

Land

Remained low and slightly variable, with a decrease to below half of the 2018 value by 2022.

Average Age Ratio

Generally rising, indicating an aging asset base, with a minor reversal in the latest year.

Property, Plant and Equipment, Cost

The cost of property, plant, and equipment displayed an overall decreasing trend, particularly notable after 2020. It increased from US$440.7 million in 2018 to a peak of US$511.4 million in 2020, followed by a considerable decline to US$336.6 million by the end of 2022. This suggests a significant reduction in capital investment or asset disposals in recent years.

Land

The value of land remained relatively stable from 2018 to 2021, fluctuating slightly around US$2.2 million, before dropping sharply to US$1.0 million in 2022. The decline indicates a possible sale or revaluation of land assets during this period.

Depreciation and Amortization Expense Related to Property, Plant and Equipment

The depreciation and amortization expense showed minor fluctuations but tended to decline after 2020. It rose modestly from US$49.5 million in 2018 to US$53.4 million in 2020, then decreased to US$37.3 million by 2022. This decline aligns with the reduction in property, plant, and equipment cost, reflecting lower asset base or changes in depreciation policies.

Estimated Total Useful Life

The estimated useful life of property, plant, and equipment remained stable between 9 and 10 years throughout the period, indicating consistent assumptions used for asset depreciation over time.

Accumulated Depreciation

The accumulated depreciation shows an increase from 312,000 thousand USD at the end of 2018 to a peak of 370,800 thousand USD at the end of 2020. However, this upward trend reverses in the following years, decreasing to 336,200 thousand USD in 2021 and further to 251,300 thousand USD in 2022. This unusual decline over the last two years may indicate asset disposals, revaluations, or changes in depreciation methods.

Depreciation and Amortization Expense Related to Property, Plant, and Equipment

The depreciation and amortization expense remained relatively stable from 2018 through 2021, fluctuating between 49,200 and 53,400 thousand USD. However, in 2022, there is a notable decrease to 37,300 thousand USD. This drop aligns with the decline in accumulated depreciation in the same year and may suggest reduced depreciation charges possibly due to lower asset base or changes in depreciation policies.

Time Elapsed Since Purchase

The time elapsed since purchase increased from 6 years in 2018 to 7 years by 2019 and remained constant at 7 years through to 2022. This indicates that the assets analyzed have not been significantly refreshed or replaced during this period, which may contribute to the declining accumulated depreciation and expense patterns observed.

Property, Plant and Equipment, Net

The net value of property, plant, and equipment shows an initial increase from 128,700 thousand USD in 2018 to 140,600 thousand USD in 2020, indicating some level of asset acquisition or capital improvements during this period. However, from 2020 onwards, there is a noticeable decline, with the value dropping to 102,800 thousand USD in 2021 and further to 85,300 thousand USD in 2022. This downward trend suggests significant disposals, asset impairments, or accelerated depreciation impacting the net book value.

Land

The value of land remains relatively stable between 2018 and 2021, fluctuating marginally around 2,200 thousand USD, with a slight increase to 2,300 thousand USD in 2020. However, in 2022 there is a sharp decrease to 1,000 thousand USD, which may imply a sale or revaluation of land assets.

Depreciation and Amortization Expense Related to Property, Plant and Equipment

Depreciation expenses were fairly consistent from 2018 through 2021, fluctuating between 49,200 thousand USD and 53,400 thousand USD and peaking in 2020. In 2022, depreciation expenses decreased significantly to 37,300 thousand USD. This reduction aligns with the falling net book value of property and equipment, possibly reflecting asset disposals or changes in depreciation policies or assumptions.

Estimated Remaining Life

The estimated remaining life of the assets was stable at 3 years from 2018 to 2020. This decreased to 2 years starting in 2021 and remained at that level through 2022. The reduction in estimated remaining life suggests that assets are aging or are being replaced less frequently, contributing to the accelerated depreciation and decline in net asset value.