Name: Roper Technologies Inc. (NASDAQ:ROP) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Roper Technologies Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net earnings from continuing operations	985,600)	982,600)	949,700)	1,767,900)	944,400)
Depreciation and amortization of property, plant and equipment	37,300)	49,700)	53,400)	49,200)	49,500)
Amortization of intangible assets	612,800)	584,400)	467,400)	366,800)	317,500)
Amortization of deferred financing costs	11,800)	13,500)	10,900)	7,300)	6,300)
Non-cash stock compensation	118,500)	136,100)	121,700)	104,500)	133,800)
Impairment of intangible assets	—)	99,500)	—)	—)	—)
Loss on debt extinguishment	—)	—)	—)	—)	15,900)
Gain on disposal of assets and businesses, net of associated income tax	—)	(21,600)	—)	(687,300)	—)
Income tax provision, excluding tax associated with gain on disposal of businesses and assets	296,400)	282,900)	259,600)	226,100)	254,000)
Accounts receivable	2,500)	(100,200)	53,300)	(46,700)	(83,500)
Unbilled receivables	(11,100)	(19,400)	(39,300)	(12,000)	(14,000)
Inventories	(43,100)	(13,900)	4,600)	(17,300)	(21,800)
Accounts payable	21,300)	—)	—)	—)	—)
Other accrued liabilities	(7,600)	—)	—)	—)	—)
Accounts payable and accrued liabilities (legacy)	—)	66,300)	121,600)	(12,200)	68,800)
Deferred revenue	52,900)	164,500)	56,900)	108,800)	86,600)
Changes in operating assets and liabilities, net of acquired businesses	14,900)	97,300)	197,100)	20,600)	36,100)
Cash tax paid for gain on disposal of businesses	(953,800)	—)	(201,900)	(39,400)	—)
Cash income taxes paid, excluding tax associated with gain on disposal of businesses	(498,900)	(320,700)	(313,200)	(331,500)	(321,600)
Other, net	(18,000)	(37,500)	(19,600)	(22,400)	(5,800)
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities	(379,000)	883,600)	575,400)	(306,100)	485,700)
Cash provided by operating activities	606,600)	1,866,200)	1,525,100)	1,461,800)	1,430,100)
Acquisitions of businesses, net of cash acquired	(4,280,100)	(217,000)	(6,018,100)	(2,387,300)	(1,275,800)
Capital expenditures	(40,100)	(32,900)	(31,200)	(52,700)	(49,100)
Capitalized software expenditures	(30,200)	(29,700)	(17,700)	(10,200)	(9,500)
Proceeds from (used in) disposal of businesses	—)	—)	(4,300)	1,156,800)	—)
Proceeds from sale of assets	—)	27,100)	—)	—)	—)
Other, net	(1,400)	(700)	(2,600)	(2,600)	(700)
Cash used in investing activities	(4,351,800)	(253,200)	(6,073,900)	(1,296,000)	(1,335,100)
Proceeds from senior notes	—)	—)	3,300,000)	1,200,000)	1,500,000)
Payment of senior notes	(800,000)	(500,000)	(600,000)	—)	(1,300,000)
Borrowings (payments) under revolving line of credit, net	(470,000)	(1,150,000)	1,620,000)	(865,000)	(405,000)
Debt issuance costs	(3,900)	—)	(42,000)	(12,100)	(13,900)
Redemption premium for debt extinguishment	—)	—)	—)	—)	(15,500)
Cash dividends to stockholders	(262,300)	(236,400)	(214,100)	(191,700)	(170,100)
Treasury stock sales	14,300)	15,100)	10,500)	6,800)	5,400)
Proceeds from stock-based compensation, net	68,200)	64,300)	64,400)	34,900)	10,600)
Other, net	(200)	(100)	(1,900)	4,100)	400)
Cash provided by (used in) financing activities	(1,453,900)	(1,807,100)	4,136,900)	177,000)	(388,100)
Cash provided by operating activities from discontinued operations	128,000)	145,700)	—)	—)	—)
Proceeds from disposition of discontinued operations	5,561,800)	115,600)	—)	—)	—)
Cash used in investing activities from discontinued operations	(500)	(5,300)	—)	—)	—)
Cash used in financing activities from discontinued operations	(11,400)	(6,400)	—)	—)	—)
Cash provided by discontinued operations	5,677,900)	249,600)	—)	—)	—)
Effect of exchange rate changes on cash	(37,500)	(12,300)	10,500)	2,500)	(13,800)
Net increase (decrease) in cash and cash equivalents	441,300)	43,200)	(401,400)	345,300)	(306,900)
Cash and cash equivalents, beginning of year	351,500)	308,300)	709,700)	364,400)	671,300)
Cash and cash equivalents, end of year	792,800)	351,500)	308,300)	709,700)	364,400)

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).

Cash flow dynamics from 2018 to 2022 reflect a strategic focus on aggressive acquisition-led growth, funded by a combination of operating cash flows, debt issuance, and significant divestitures of discontinued operations.

Operating Cash Flow Performance: Cash provided by operating activities showed a steady upward trajectory from 1.43 billion in 2018 to a peak of 1.87 billion in 2021, before experiencing a sharp decline to 606.6 million in 2022. This 2022 contraction was primarily driven by a substantial cash tax payment of 953.8 million associated with the gain on disposal of businesses. A consistent trend is observed in the growth of non-cash charges, specifically the amortization of intangible assets, which increased from 317.5 million in 2018 to 612.8 million in 2022, indicating a growing base of acquired intangible assets.
Investment Strategy and Capital Allocation: Investing activities are characterized by high volatility due to large-scale acquisitions. Significant cash outflows occurred in 2020 (6.02 billion) and 2022 (4.28 billion) for business acquisitions. In contrast, capital expenditures remained relatively low and stable, ranging between 31.2 million and 52.7 million annually, suggesting a capital-light operational model where growth is driven by external acquisitions rather than internal infrastructure expansion.
Financing and Liquidity Management: Financing activities have been utilized to support acquisition spending and shareholder returns. A major spike in financing inflows occurred in 2020, with 4.14 billion provided, largely through the issuance of senior notes (3.3 billion) and revolving credit lines (1.62 billion). Cash dividends to stockholders have demonstrated a consistent year-over-year increase, rising from 170.1 million in 2018 to 262.3 million in 2022. The company maintains an active debt management cycle, characterized by the periodic issuance and payment of senior notes.
Impact of Discontinued Operations: The 2022 fiscal year was significantly impacted by the disposition of discontinued operations, which provided a massive cash infusion of 5.68 billion. This inflow, primarily consisting of 5.56 billion from the proceeds of disposition, served as a critical liquidity source that offset the heavy acquisition spending and the sharp decline in cash from operating activities during that period.

Overall, the financial profile indicates a transition toward a diversified portfolio through strategic acquisitions and divestitures, with the 2022 results highlighting a major rebalancing of the business portfolio that resulted in a strengthened year-end cash position of 792.8 million.

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