Operating Profit Margin
since 2005
Calculation
Roper Technologies Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income from operations1 | ÷ | Net revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 28.38% | = | 100 | × | 1,524,500) | ÷ | 5,371,800) |
| Dec 31, 2021 | 25.62% | = | 100 | × | 1,480,200) | ÷ | 5,777,800) |
| Dec 31, 2020 | 25.89% | = | 100 | × | 1,431,100) | ÷ | 5,527,100) |
| Dec 31, 2019 | 27.92% | = | 100 | × | 1,498,400) | ÷ | 5,366,800) |
| Dec 31, 2018 | 26.90% | = | 100 | × | 1,396,400) | ÷ | 5,191,200) |
| Dec 31, 2017 | 26.27% | = | 100 | × | 1,210,244) | ÷ | 4,607,471) |
| Dec 31, 2016 | 27.83% | = | 100 | × | 1,054,563) | ÷ | 3,789,925) |
| Dec 31, 2015 | 28.69% | = | 100 | × | 1,027,918) | ÷ | 3,582,395) |
| Dec 31, 2014 | 28.16% | = | 100 | × | 999,473) | ÷ | 3,549,494) |
| Dec 31, 2013 | 26.01% | = | 100 | × | 842,361) | ÷ | 3,238,128) |
| Dec 31, 2012 | 25.31% | = | 100 | × | 757,587) | ÷ | 2,993,489) |
| Dec 31, 2011 | 23.62% | = | 100 | × | 660,539) | ÷ | 2,797,089) |
| Dec 31, 2010 | 21.55% | = | 100 | × | 514,294) | ÷ | 2,386,112) |
| Dec 31, 2009 | 19.29% | = | 100 | × | 395,396) | ÷ | 2,049,668) |
| Dec 31, 2008 | 21.08% | = | 100 | × | 486,161) | ÷ | 2,306,371) |
| Dec 31, 2007 | 20.85% | = | 100 | × | 438,354) | ÷ | 2,102,049) |
| Dec 31, 2006 | 19.85% | = | 100 | × | 337,653) | ÷ | 1,700,734) |
| Dec 31, 2005 | 18.22% | = | 100 | × | 264,899) | ÷ | 1,453,731) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The operational performance from 2005 to 2022 is characterized by a consistent long-term expansion in both absolute operating income and profit margins. Net revenues increased from approximately 1.45 billion US dollars in 2005 to 5.37 billion US dollars in 2022, while income from operations grew proportionally from 264.9 million US dollars to 1.52 billion US dollars over the same period.
- Operating Margin Growth Trends
- A sustained upward trajectory in operating profit margins is observed between 2005 and 2015, with the ratio climbing from 18.22% to a peak of 28.69%. This period indicates significant improvements in operational efficiency and cost management relative to revenue growth.
- Cyclical Fluctuations and Resilience
- A brief contraction in the operating margin occurred in 2009, dropping to 19.29% from 21.08% in 2008, correlating with a decline in net revenues. However, a rapid recovery followed, with margins exceeding 21% by 2010 and maintaining a general upward trend for the subsequent five years.
- Margin Stabilization Phase
- From 2016 to 2021, the operating profit margin entered a period of relative stabilization, fluctuating within a tight range between 25.62% and 27.92%. This suggests a mature operational structure where efficiency gains reached a plateau.
- Recent Operational Efficiency
- In 2022, a notable divergence is observed where the operating profit margin increased to 28.38% despite a decrease in net revenues from 5.78 billion US dollars in 2021 to 5.37 billion US dollars. This indicates a strong capacity for cost optimization or a shift toward higher-margin revenue streams during the period.
Overall, the data reflects a transition from a moderate-margin operation to a high-margin business model. The ability to maintain margins above 25% for the last nine reporting years demonstrates a consistent level of operational discipline and pricing power.
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Comparison to Competitors
Roper Technologies Inc., operating profit margin, long-term trends, comparison to competitors
| Roper Technologies Inc. | Apple Inc. | Arista Networks Inc. | Cisco Systems Inc. | Dell Technologies Inc. | Lumentum Holdings Inc. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 28.38% | 30.29% | 34.86% | 27.09% | 4.60% | 17.71% | 6.45% |
| Dec 31, 2021 | 25.62% | 29.78% | 31.37% | 25.76% | 5.46% | 30.24% | 3.48% |
| Dec 31, 2020 | 25.89% | 24.15% | 30.19% | 27.63% | 2.85% | 12.16% | 2.57% |
| Dec 31, 2019 | 27.92% | 24.57% | 33.42% | 27.39% | -0.21% | -1.38% | 2.78% |
| Dec 31, 2018 | 26.90% | 26.69% | 12.71% | 24.95% | — | 11.21% | 2.82% |
| Dec 31, 2017 | 26.27% | 26.76% | 28.57% | 24.94% | — | 4.75% | 3.82% |
| Dec 31, 2016 | 27.83% | 27.84% | 21.56% | 25.71% | — | 1.27% | 4.82% |
| Dec 31, 2015 | 28.69% | 30.48% | 17.83% | 21.91% | — | -2.80% | 7.37% |
| Dec 31, 2014 | 28.16% | 28.72% | 21.49% | 19.82% | — | — | 5.47% |
| Dec 31, 2013 | 26.01% | 28.67% | — | 23.03% | — | — | 2.34% |
| Dec 31, 2012 | 25.31% | 35.30% | — | 21.85% | — | — | 4.54% |
| Dec 31, 2011 | 23.62% | 31.22% | — | 17.76% | — | — | 6.23% |
| Dec 31, 2010 | 21.55% | 28.19% | — | 22.89% | — | — | 5.65% |
| Dec 31, 2009 | 19.29% | 20.96% | — | 20.27% | — | — | 4.60% |
| Dec 31, 2008 | 21.08% | 19.32% | — | 23.88% | — | — | 7.45% |
| Dec 31, 2007 | 20.85% | 18.37% | — | 24.69% | — | — | 7.11% |
| Dec 31, 2006 | 19.85% | 12.70% | — | 24.56% | — | — | — |
| Dec 31, 2005 | 18.22% | 11.84% | — | 29.90% | — | — | — |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).