Roper Technologies Inc. (NASDAQ:ROP)

Total Asset Turnover

The reported total asset turnover shows a declining trend from 0.34 in 2018 to 0.20 in 2022, indicating a steady decrease in the efficiency with which the company uses its assets to generate sales. The adjusted total asset turnover follows a similar pattern, decreasing from 0.34 to 0.21 over the same period, confirming reduced asset utilization efficiency.

Current Ratio

The reported current ratio declines from 1.11 in 2018 to 0.67 in 2022, suggesting a deterioration in short-term liquidity as current liabilities increasingly exceed current assets. However, the adjusted current ratio remains higher and more stable, moving from 2.12 in 2018 to 1.28 in 2022. This implies that when adjusting for certain items, the company maintains a healthier liquidity position than the reported figures suggest.

Debt to Equity Ratio

The reported debt to equity ratio fluctuates, rising from 0.64 in 2018 to a peak of 0.91 in 2020 before declining sharply to 0.42 by 2022. The adjusted ratio follows a similar trend, decreasing overall from 0.56 to 0.36 across the period. This indicates a reduction in financial leverage and possibly an improved capital structure with lower relative debt over time.

Debt to Capital Ratio

Both reported and adjusted debt to capital ratios demonstrate a declining pattern, with reported values dropping from 0.39 in 2018 to 0.29 in 2022 and adjusted values from 0.36 to 0.26. This points to a moderate decrease in the proportion of capital financed by debt, which may contribute to a more conservative financing approach.

Financial Leverage

The reported financial leverage initially increases from 1.97 in 2018 to 2.29 in 2020, followed by a decline to 1.68 in 2022. Adjusted financial leverage shows a similar movement, reaching a peak at 1.84 in 2020 and then decreasing to 1.41. This suggests an initial increase in leverage followed by deliberate deleveraging efforts during the later years.

Net Profit Margin

The reported net profit margin exhibits volatility, rising significantly in 2019 to 32.94% from 18.19% in 2018, dropping to 17.18% in 2020, then sharply increasing to an unusually high 84.6% in 2022. The adjusted net profit margin remains more consistent, fluctuating mildly between 17.82% and 19.64%, indicating that non-recurring items or accounting adjustments may explain the reported margin spike in 2022.

Return on Equity (ROE)

The reported ROE increases from 12.2% in 2018 to a high of 18.63% in 2019, declines in the following two years, and then rises again to 28.34% in 2022. The adjusted ROE, however, shows a steady decline from 10.1% to 5.82% over the period. This divergence suggests that exceptional items inflated reported returns in recent years, while core profitability as measured on an adjusted basis weakened.

Return on Assets (ROA)

The reported ROA peaks at 9.76% in 2019 before dropping to 3.95% in 2020 and recovering to 16.84% in 2022. Conversely, adjusted ROA gradually decreases from 6.1% in 2018 to 4.14% in 2022. The disparity between reported and adjusted figures indicates the presence of extraordinary gains or losses impacting reported returns, while the underlying asset profitability shows a declining trend.

Net Revenues Trend

Net revenues exhibited a gradual increase from 5,191,200 thousand US dollars in 2018 to 5,777,800 thousand US dollars in 2021. However, in 2022, there was a noticeable decline to 5,371,800 thousand US dollars, indicating a reversal in the previously upward trend.

Total Assets Trend

Total assets consistently increased each year from 15,249,500 thousand US dollars in 2018 to 26,980,800 thousand US dollars in 2022, reflecting significant growth in the asset base over the five-year period.

Reported Total Asset Turnover Analysis

The reported total asset turnover ratio, which measures efficiency in using assets to generate revenues, declined steadily from 0.34 in 2018 to 0.20 in 2022. This downward trend suggests decreasing efficiency, with revenues growing at a slower pace relative to asset expansion.

Adjusted Net Revenues Evolution

Adjusted net revenues followed a similar pattern to reported net revenues, rising from 5,300,700 thousand US dollars in 2018 to a peak of 5,950,400 thousand US dollars in 2021, followed by a decrease to 5,677,800 thousand US dollars in 2022. The adjusted figures consistently exceed the reported numbers, implying recalibrations for comparability or other accounting adjustments.

Adjusted Total Assets Movement

Adjusted total assets mirrored the reported total assets, increasing year-on-year from 15,472,377 thousand US dollars in 2018 to 26,941,500 thousand US dollars in 2022. The similarity in figures indicates consistency in asset valuation adjustments.

Adjusted Total Asset Turnover Evaluation

The adjusted total asset turnover ratio decreased from 0.34 in 2018 to 0.21 in 2022, reaffirming the declining trend observed in the reported ratio. This decrease underscores a reduction in the company's ability to efficiently convert its asset base into revenue over time.

The financial data over the reported periods exhibits notable fluctuations in liquidity-related measures. Current assets initially increased significantly from 1,610,700 thousand US dollars at the end of 2018 to a peak of 2,421,100 thousand US dollars by the end of 2021, before declining to 1,932,400 thousand US dollars in 2022. Conversely, current liabilities showed a consistent upward trend from 1,448,200 thousand US dollars in 2018 to 3,121,800 thousand US dollars in 2021, followed by a slight decrease to 2,892,500 thousand US dollars in 2022.

The reported current ratio, which reflects the company's ability to cover short-term obligations with current assets, demonstrated a declining trend over the five-year period. It decreased from a level slightly above 1 in 2018 (1.11) to below 1 throughout the remainder of the period, ending at 0.67 in 2022. This downward movement indicates a weakening in liquidity when considering the raw current assets and liabilities.

Adjusted figures, presumably reflecting modifications to the asset and liability valuation for more accurate liquidity assessment, present a different perspective. Adjusted current assets showed a similar trend to unadjusted assets, rising from 1,633,800 thousand US dollars in 2018 to a high of 2,440,800 thousand US dollars in 2021, then decreasing to 1,949,000 thousand US dollars in 2022. Adjusted current liabilities, in contrast to reported liabilities, show a more moderate increase, rising from 770,300 thousand US dollars in 2018 to 1,991,600 thousand US dollars in 2021, followed by a decline to 1,521,800 thousand US dollars in 2022.

The adjusted current ratio, starting at a strong 2.12 in 2018, dropped substantially to around 1.29 in 2019 and remained relatively stable in the range of 1.23 to 1.28 through to 2022. This suggests that, after adjustment, liquidity remains adequate with assets sufficiently exceeding liabilities to meet short-term obligations.

Overall, the contrast between reported and adjusted measures indicates that raw reported data might understate the company’s liquidity position. Despite the pressures from rising liabilities, adjustments reveal a more stable and adequate liquidity status in recent years. However, both sets of data imply some volatility and a need for close monitoring of working capital components to ensure ongoing financial stability.

Total Debt

The total debt increased significantly from 4.94 billion in 2018 to a peak of 9.57 billion in 2020, followed by a consistent decline over the following two years, reaching 6.66 billion in 2022. This indicates a period of increased leverage around 2020, with subsequent deleveraging efforts.

Stockholders’ Equity

Stockholders’ equity demonstrated a steady upward trend throughout the period. It increased from 7.74 billion in 2018 to 16.04 billion in 2022, more than doubling over five years, highlighting strengthening capital base and accumulation of retained earnings or equity injections.

Reported Debt to Equity Ratio

Despite fluctuations in absolute debt and equity figures, the reported debt to equity ratio declined overall from 0.64 in 2018 to 0.42 in 2022. After peaking at 0.91 in 2020, the ratio decreased markedly, reflecting the combined effect of reduced debt and increased equity, signaling improved financial leverage position.

Adjusted Total Debt

The adjusted total debt mirrored the pattern of reported total debt, with a rise from around 5.19 billion in 2018 to nearly 9.85 billion in 2020, then a reduction to approximately 6.87 billion by 2022. This suggests consistency in debt adjustment methodology and confirms the deleveraging trend after 2020.

Adjusted Stockholders’ Equity

Adjusted equity rose steadily from about 9.35 billion in 2018 to 19.16 billion in 2022, reinforcing the trend observed in reported equity data, and indicating ongoing strengthening of the company's net asset base when considering adjustments.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio decreased from 0.56 in 2018 to 0.36 in 2022, again peaking at 0.76 in 2020 before declining. This further confirms the improvement in leverage and capital structure after the elevated levels recorded in 2020.

The financial data reveals distinct patterns in the company's capital structure over the analyzed periods.

Total Debt

Total debt initially increased from approximately 4.94 billion to 5.28 billion between 2018 and 2019, followed by a significant jump to 9.57 billion in 2020. Subsequently, total debt decreased steadily to 7.92 billion in 2021 and further to 6.66 billion in 2022.

Total Capital

Total capital exhibited consistent growth from nearly 12.68 billion in 2018 to over 22.70 billion in 2022, with a peak increase seen in 2020 (approximately 20.05 billion), slight decline in 2021, and recovery in 2022 to the highest level within the period.

Reported Debt to Capital Ratio

This ratio decreased from 0.39 in 2018 to 0.36 in 2019, surged to 0.48 in 2020 reflecting elevated leverage, then declined to 0.41 in 2021 and reached a low of 0.29 in 2022. This suggests a marked reduction in debt proportion relative to capital in the latest year.

Adjusted Total Debt

Adjusted total debt trends mirror reported debt, starting at approximately 5.19 billion in 2018 and increasing to 5.55 billion in 2019. There was a sharp rise to 9.85 billion in 2020, followed by decreases to 8.15 billion in 2021 and 6.87 billion in 2022.

Adjusted Total Capital

Adjusted total capital shows a steady upward trend from roughly 14.54 billion in 2018 to 26.03 billion in 2022, with a notable increase in 2020 and a slight decline in 2021 before reaching the highest point in 2022.

Adjusted Debt to Capital Ratio

The adjusted ratio declined from 0.36 in 2018 to 0.33 in 2019, rose to 0.43 in 2020, then decreased to 0.37 in 2021 and further to 0.26 in 2022. This indicates that although leverage peaked in 2020, the company has significantly reduced its adjusted debt relative to capital by 2022.

Overall, the data portrays an initial increase in debt levels and leverage reaching a peak in 2020, followed by a strong deleveraging trend through 2022. Capital base growth appears steady and resilient throughout the period, supporting a healthier capital structure with reduced reliance on debt in the most recent years.

The financial data demonstrates notable growth and variability across multiple balance sheet metrics over the five-year period ending in 2022.

Total assets

Total assets showed a consistent upward trend from approximately 15.2 billion in 2018 to nearly 27.0 billion in 2022, representing substantial growth over the period. The most significant annual increase occurred between 2019 and 2020, with assets rising by roughly 5.9 billion. Despite a slight dip from 2020 to 2021, total assets resumed growth in 2022.

Stockholders’ equity

Stockholders’ equity steadily increased from about 7.7 billion in 2018 to 16.0 billion in 2022, indicating strengthening capital structure. The rise was particularly pronounced between 2021 and 2022, during which equity grew by approximately 4.5 billion, suggesting enhanced retained earnings, equity injections, or revaluations contributing to equity expansion.

Reported financial leverage

The reported financial leverage ratio fluctuated over the period but followed a declining trend overall. Starting at 1.97 in 2018, it decreased to 1.68 by 2022, with a peak at 2.29 in 2020. This indicates the company operated with higher leverage in 2020 but thereafter moved towards a more conservative leverage position by reducing liabilities or increasing equity.

Adjusted total assets

Adjusted total assets closely mirrored the trend in reported total assets, increasing from approximately 15.5 billion in 2018 to 26.9 billion in 2022. These adjustments yielded values slightly different yet following the same general growth trajectory, indicating consistent asset base expansion after adjustments.

Adjusted stockholders’ equity

Adjusted equity showed strong growth commensurate with reported equity, increasing from around 9.3 billion in 2018 to 19.2 billion in 2022. The adjusted figures exhibit a higher base than the reported equity, with the gap widening over time, suggesting that adjustments added significant value to shareholder equity components over the period.

Adjusted financial leverage

The adjusted financial leverage ratio consistently declined from 1.66 in 2018 to 1.41 in 2022, signaling a steady move toward lowered leverage under adjusted accounting measures. The ratio displayed a small rise in 2020 to 1.84 but returned to the downward trend thereafter, aligning with the general deleveraging trend observed in reported leverage ratios.

In summary, the data reveals a company experiencing robust asset and equity growth coupled with a general reduction in financial leverage. The adjusted values suggest a more conservative assessment of leverage, with adjustments increasing equity values and decreasing leverage ratios compared to reported figures. This pattern indicates strengthening financial stability and a strategic move towards lower overall risk exposure from financial leverage during the analyzed period.

The financial data reveals several notable trends across the analyzed period. Net earnings exhibit volatility, with a significant increase from 944,400 thousand USD in 2018 to 1,767,900 thousand USD in 2019, followed by a sharp decline to 949,700 thousand USD in 2020. Earnings recovered moderately in 2021 to 1,152,600 thousand USD and then surged substantially to 4,544,700 thousand USD in 2022.

Net revenues show a generally modest upward trend from 5,191,200 thousand USD in 2018 to a peak of 5,777,800 thousand USD in 2021, after which a decline to 5,371,800 thousand USD was observed in 2022. Despite this slight drop, revenues in 2022 remain higher than the initial 2018 value.

The reported net profit margin presents pronounced fluctuations. It increased sharply from 18.19% in 2018 to 32.94% in 2019, then decreased notably to around 17.18% in 2020. The margin improved to 19.95% in 2021 and exhibited an extraordinary rise to 84.6% in 2022, a level substantially beyond typical industry norms, suggesting potentially unusual or one-time factors influencing profitability that year.

Considering adjusted figures, adjusted net earnings generally increased from 944,500 thousand USD in 2018 to a peak of 1,862,700 thousand USD in 2019, followed by a decline to 1,139,400 thousand USD in 2020. Thereafter, adjusted earnings remained relatively stable, with slight decreases to 1,117,200 thousand USD in 2021 and 1,115,400 thousand USD in 2022.

Adjusted net revenues steadily increased from 5,300,700 thousand USD in 2018 to 5,950,400 thousand USD in 2021, showing consistent growth. A reduction to 5,677,800 thousand USD occurred in 2022, paralleling the trend seen in reported revenues but retaining an overall upward trajectory compared to the start of the period.

The adjusted net profit margin follows a smoother trend than the reported margin, starting at 17.82% in 2018 and peaking at 33.72% in 2019. It then declined significantly to 19.99% in 2020 and continued on a slight downward trend to 18.78% in 2021 and 19.64% in 2022. This pattern suggests that, when excluding unusual items, profitability has been somewhat more stable, with margins in the high teens to low twenties percentage range in recent years.

Summary of Key Observations

Net earnings and adjusted net earnings both peaked in 2019 and showed declines in the following years, with reported net earnings surging dramatically in 2022.

Revenues followed a general growth trajectory until 2021, with a slight decline in 2022, visible in both reported and adjusted figures.

Reported net profit margins demonstrate considerable volatility and an exceptional spike in 2022, whereas adjusted margins show a more consistent pattern with gradual declines after 2019.

The discrepancy between reported and adjusted net profit margins in 2022 indicates the impact of extraordinary items or accounting adjustments affecting reported profitability.

The financial data shows fluctuations and distinct trends in key profitability and equity metrics over the five-year period.

Net earnings

Net earnings experienced substantial variability between 2018 and 2022. After nearly doubling from 944.4 million to 1.7689 billion in 2019, net earnings declined sharply in 2020 to 949.7 million. This was followed by a moderate increase in 2021 to 1.1526 billion and then a significant surge in 2022 reaching 4.5447 billion, marking the highest value in the period. This pattern suggests a strong recovery and substantial profitability growth in the latest year.

Stockholders’ equity

Stockholders’ equity showed consistent growth throughout the period. Starting at 7.7385 billion in 2018, it increased steadily each year to reach 16.0378 billion by the end of 2022. The growth rate appeared to accelerate somewhat in 2022, indicating increased capital strength or reinvestment of earnings in that year.

Reported Return on Equity (ROE)

Reported ROE mirrored the volatility seen in net earnings. It rose considerably from 12.2% in 2018 to 18.63% in 2019, dropped significantly to 9.06% in 2020, then rose slightly to 9.97% in 2021. In 2022, it sharply increased to 28.34%, the highest in the examined timeframe. This indicates exceptional efficiency in generating earnings relative to equity in the most recent year.

Adjusted net earnings

Adjusted net earnings generally rose from 944.5 million in 2018 to a peak of 1.8627 billion in 2019, followed by a decline to 1.1394 billion in 2020. The figures stabilized around 1.117-1.115 billion in 2021 and 2022, showing no growth in adjusted earnings during the last two years, in contrast to the notable increase seen in reported net earnings in 2022.

Adjusted stockholders’ equity

Adjusted stockholders’ equity rose steadily every year, from 9.3482 billion in 2018 to 19.1575 billion in 2022. This reflects ongoing equity base expansion under adjustment considerations, consistent with the increasing reported equity trend.

Adjusted Return on Equity (Adjusted ROE)

Adjusted ROE decreased consistently throughout the period, from 10.1% in 2018 down to 5.82% in 2022. Despite the increase in adjusted equity base, the return generated on this equity diminished every year, suggesting declining profitability or efficiency when considering adjusted earnings.

In summary, the reported earnings and ROE portray a volatile but ultimately strong improvement culminating in an exceptional 2022 performance. In contrast, adjusted figures show more conservative growth in earnings and equity, with a declining trend in adjusted ROE, indicating potential adjustments reducing reported profitability metrics. The equity base increased substantially across both reported and adjusted measures, evidencing strengthened capital resources over time.

The analysis of the financial data over the five-year period reveals several notable trends in profitability, asset growth, and return measures.

Net Earnings

The net earnings showed significant volatility across the years. Starting at approximately $944 million in 2018, net earnings nearly doubled in 2019 to about $1.77 billion, followed by a decline in 2020 to roughly $950 million. In 2021, earnings increased again to about $1.15 billion, culminating in a substantial increase in 2022 to approximately $4.54 billion. This sharp increase in 2022 represents a considerable deviation from prior years, suggesting possibly significant one-time gains or improved operational performance.

Total Assets

Total assets consistently expanded over the period. Beginning at roughly $15.25 billion in 2018, assets increased to $18.1 billion in 2019, then sharply rose to approximately $24 billion in 2020. The asset base slightly decreased in 2021 to about $23.7 billion but then grew again to nearly $27 billion in 2022. The overall trend indicates sustained investments and asset accumulation.

Reported Return on Assets (ROA)

The reported ROA showed considerable fluctuation. It increased from 6.19% in 2018 to a peak of 9.76% in 2019, then fell sharply to 3.95% in 2020. In 2021, it improved slightly to 4.86%, and in 2022, it surged significantly to 16.84%, which aligns with the notable spike in net earnings that year. This suggests a marked improvement in profitability relative to asset base in 2022, possibly due to exceptional performance or accounting adjustments.

Adjusted Net Earnings

Adjusted net earnings display a smoother trend compared to reported net earnings, indicating underlying operational performance excluding extraordinary items. Starting at approximately $944.5 million in 2018, adjusted earnings rose steadily to $1.86 billion in 2019. After peaking in 2019, earnings declined to $1.14 billion in 2020 and slightly decreased to $1.12 billion in 2021. In 2022, adjusted net earnings marginally decreased to $1.12 billion, showing stability after prior volatility.

Adjusted Total Assets

The adjusted total assets closely track reported total assets, starting at about $15.47 billion in 2018 and progressing to approximately $26.94 billion in 2022. Growth patterns mirror those of reported assets, with steady increases over most periods and a slight dip in 2021.

Adjusted Return on Assets (ROA)

The adjusted ROA remained relatively stable but at a lower level than the reported ROA. It increased from 6.1% in 2018 to a high of 10.33% in 2019, then declined to 4.76% in 2020 and slightly decreased to 4.73% in 2021. The adjusted ROA decreased further to 4.14% in 2022, indicating a steady normalized return on assets that contrasts with the volatility observed in the reported ROA, particularly the spike in 2022. This suggests that the 2022 ROA surge in reported figures may be related to non-recurring items excluded from adjusted calculations.