Common-Size Income Statement
Quarterly Data
Roper Technologies Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
The financial performance over the analyzed period exhibits a marked expansion in gross profitability, which is partially offset by a steady increase in operating expenses. While core operational margins remain resilient, the overall net earnings are characterized by significant volatility due to large, non-recurring gains from business disposals and discontinued operations.
- Gross Profitability Trends
- A consistent improvement in gross margin is observed. From March 2018 through December 2020, gross profit margins generally fluctuated between 62% and 64%. Starting in early 2021, there was a structural shift, with margins climbing to the 67% to 70% range. This improvement is directly attributable to a reduction in the cost of sales, which declined from approximately 37% of net revenues in 2018 to approximately 30% by late 2023.
- Operating Expense Analysis
- Selling, general, and administrative (SG&A) expenses have trended upward over the period. Initially averaging between 35% and 37% of net revenues in 2018 and 2019, these expenses rose to a range of 40% to 42% between 2021 and 2023. This increase in operational overhead has largely absorbed the gains achieved through the reduction in the cost of sales, keeping the income from operations relatively stable.
- Operating Income and One-time Charges
- Income from operations remained largely stable, typically ranging between 25% and 29% of net revenues. A notable exception occurred in December 2021, where operating income dropped to 21.20% due to a one-time impairment of intangible assets representing 6.58% of net revenues. Aside from this event, operating efficiency has remained consistent despite the shift in cost structures.
- Financial and Non-Operating Items
- Net interest expenses have remained relatively stable, typically fluctuating between 2% and 4% of net revenues, with a slight downward trend toward the end of the period. Other income and expenses have remained marginal, except for a significant negative impact in December 2022, where other expenses reached 3.52% of net revenues.
- Net Earnings and Extraordinary Gains
- Net earnings from continuing operations show a gradual upward trajectory, moving from the 17% to 18% range in 2018 to 22% to 23% by late 2023. However, total net earnings exhibit extreme volatility due to non-core activities. Significant spikes occurred in December 2019 due to a gain on the disposal of businesses (57.43% of revenue) and in March and December 2022, driven by massive gains from discontinued operations (139.40% and 117.49% of revenue, respectively).
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?