Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Roper Technologies Inc., long-term (investment) activity ratios
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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited a fluctuating trend, starting at 40.34 in 2018 and slightly declining to 38.36 in 2019. It showed a modest recovery to 39.31 in 2020, followed by a significant increase to 56.2 in 2021, and further growth to 62.98 in 2022. This indicates an improvement in the company’s efficiency in generating revenue from its net fixed assets, especially notable from 2020 onwards.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- When including operating lease right-of-use assets, the net fixed asset turnover ratio decreased sharply from 40.34 in 2018 to 13.19 in 2019, with minimal increase to 13.63 in 2020. Afterwards, the ratio improved moderately to 17.84 in 2021 and 19.09 in 2022. This trend reflects changes likely related to lease accounting standards, where assets recognized from operating leases impact the ratio, initially reducing it but followed by gradual recovery.
- Total Asset Turnover
- The total asset turnover ratio consistently declined over the five-year period, dropping from 0.34 in 2018 to 0.3 in 2019, 0.23 in 2020, and remaining relatively flat around 0.24 in 2021 before decreasing further to 0.2 in 2022. This downward trend suggests a decreasing efficiency in utilizing total assets to generate sales, potentially indicating asset growth outpacing revenue generation.
- Equity Turnover
- Equity turnover also showed a continuous downward trajectory, starting at 0.67 in 2018 and steadily declining each year to 0.57 in 2019, 0.53 in 2020, 0.5 in 2021, and reaching 0.33 in 2022. This indicates a reduction in the rate at which shareholders' equity is used to produce revenue, reflecting either increased equity levels without corresponding sales growth or weakening asset utilization tied to equity.
Net Fixed Asset Turnover
Roper Technologies Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net revenues | 5,371,800) | 5,777,800) | 5,527,100) | 5,366,800) | 5,191,200) | |
| Property, plant and equipment, net | 85,300) | 102,800) | 140,600) | 139,900) | 128,700) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 62.98 | 56.20 | 39.31 | 38.36 | 40.34 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Apple Inc. | 9.36 | 9.28 | 7.47 | 6.96 | — | |
| Arista Networks Inc. | 46.11 | 37.49 | 71.90 | — | — | |
| Cisco Systems Inc. | 25.82 | 21.31 | 20.10 | 18.61 | — | |
| Dell Technologies Inc. | 18.69 | 14.65 | 15.22 | — | — | |
| Super Micro Computer Inc. | 18.17 | 12.95 | 14.28 | 16.88 | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Technology Hardware & Equipment | 11.15 | 10.63 | 9.26 | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | 4.45 | 4.75 | 4.57 | — | — | |
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).
1 2022 Calculation
Net fixed asset turnover = Net revenues ÷ Property, plant and equipment, net
= 5,371,800 ÷ 85,300 = 62.98
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the five-year period ending in 2022.
- Net Revenues
- Net revenues exhibited a general upward trend from 2018 through 2021, increasing from approximately 5.19 billion US dollars to about 5.78 billion US dollars. However, in 2022, revenues declined to approximately 5.37 billion US dollars, representing a decrease from the previous year. This suggests a potential slowdown or adverse market conditions impacting sales or service income in the latest fiscal year.
- Property, Plant, and Equipment (PP&E), Net
- The net book value of property, plant, and equipment increased modestly from 128.7 million US dollars in 2018 to 140.6 million US dollars in 2020. Subsequently, there was a sharp decline in 2021 to 102.8 million US dollars, followed by a further decrease to 85.3 million US dollars in 2022. This reduction could indicate asset disposals, impairments, or reduced capital expenditures during these years.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures the efficiency of using fixed assets to generate revenue, decreased slightly from 40.34 in 2018 to 38.36 in 2019, then marginally improved to 39.31 in 2020. Thereafter, there was a pronounced increase in 2021 to 56.2 and an even higher figure of 62.98 in 2022. This significant upward trend indicates a substantially improved efficiency in utilizing fixed assets to drive revenues, particularly notable during the period when the net fixed assets were declining.
In summary, net revenues experienced growth until 2021 but faced a downturn in 2022. Meanwhile, the company’s investment in property, plant, and equipment decreased markedly after 2020. Despite this, the efficiency in using fixed assets, as represented by the net fixed asset turnover ratio, improved considerably in the last two years, reflecting stronger asset utilization or potential strategic shifts in asset management or operational focus.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Roper Technologies Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net revenues | 5,371,800) | 5,777,800) | 5,527,100) | 5,366,800) | 5,191,200) | |
| Property, plant and equipment, net | 85,300) | 102,800) | 140,600) | 139,900) | 128,700) | |
| Operating lease ROU assets (included in Other assets) | 196,100) | 221,000) | 265,000) | 266,900) | —) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 281,400) | 323,800) | 405,600) | 406,800) | 128,700) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 19.09 | 17.84 | 13.63 | 13.19 | 40.34 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Apple Inc. | 7.51 | 7.39 | 6.06 | 6.96 | — | |
| Arista Networks Inc. | 29.52 | 20.50 | 21.16 | — | — | |
| Cisco Systems Inc. | 17.19 | 14.51 | 14.61 | 18.61 | — | |
| Dell Technologies Inc. | 16.10 | 11.02 | 11.76 | — | — | |
| Super Micro Computer Inc. | 16.78 | 12.07 | 12.96 | 16.88 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Technology Hardware & Equipment | 8.94 | 8.34 | 7.41 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | 3.85 | 4.03 | 3.87 | — | — | |
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).
1 2022 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net revenues ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 5,371,800 ÷ 281,400 = 19.09
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the five-year period ending in 2022.
- Net Revenues
- Net revenues exhibited a gradual increase from 2018 through 2021, rising from approximately 5.19 billion USD to 5.78 billion USD. However, in 2022, revenues declined to around 5.37 billion USD, indicating a reversal from the prior upward trend.
- Property, Plant and Equipment, Net (including Operating Lease, Right-of-Use Asset)
- This asset category showed significant fluctuations. From 2018 to 2019, there was a sharp increase from 128.7 million USD to 406.8 million USD. Following this peak, the value remained fairly stable in 2020 at 405.6 million USD before decreasing substantially in 2021 and 2022 to 323.8 million USD and 281.4 million USD, respectively. The decline after 2019 suggests a reduction in capital investment or asset disposals.
- Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
- The ratio demonstrated an inverse relationship relative to property, plant, and equipment values. Starting at a high of 40.34 in 2018, the turnover ratio fell sharply to 13.19 in 2019 and stabilized around 13.63 in 2020. From 2020 onwards, the ratio improved, rising to 17.84 in 2021 and further to 19.09 in 2022. This trend indicates increasing efficiency in the use of fixed assets relative to net revenues, especially in the later years, likely reflecting the asset base reductions and sustained revenue levels.
Overall, the data suggests that after an expansion phase up to 2019, the company experienced a contraction in fixed assets while managing to sustain revenue growth until 2021. The improvement in fixed asset turnover ratio in the most recent years reflects better asset utilization, although the dip in net revenues in 2022 warrants further examination to assess underlying causes.
Total Asset Turnover
Roper Technologies Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net revenues | 5,371,800) | 5,777,800) | 5,527,100) | 5,366,800) | 5,191,200) | |
| Total assets | 26,980,800) | 23,713,900) | 24,024,800) | 18,108,900) | 15,249,500) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.20 | 0.24 | 0.23 | 0.30 | 0.34 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Apple Inc. | 1.12 | 1.04 | 0.85 | 0.77 | — | |
| Arista Networks Inc. | 0.65 | 0.51 | 0.49 | — | — | |
| Cisco Systems Inc. | 0.55 | 0.51 | 0.52 | 0.53 | — | |
| Dell Technologies Inc. | 1.09 | 0.76 | 0.78 | — | — | |
| Super Micro Computer Inc. | 1.62 | 1.59 | 1.74 | 2.08 | — | |
| Total Asset Turnover, Sector | ||||||
| Technology Hardware & Equipment | 1.01 | 0.89 | 0.77 | — | — | |
| Total Asset Turnover, Industry | ||||||
| Information Technology | 0.65 | 0.62 | 0.58 | — | — | |
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).
1 2022 Calculation
Total asset turnover = Net revenues ÷ Total assets
= 5,371,800 ÷ 26,980,800 = 0.20
2 Click competitor name to see calculations.
The analysis of the annual financial data reveals several noteworthy trends over the five-year period.
- Net Revenues
- Net revenues showed a general upward trend from 2018 to 2021, increasing from approximately $5.19 billion to $5.78 billion. However, in 2022, there was a decline to about $5.37 billion, which indicates a reversal after consistent growth in prior years.
- Total Assets
- Total assets exhibited a continuous and significant increase throughout the period. The asset base grew from roughly $15.25 billion in 2018 to nearly $27.0 billion by the end of 2022. Despite a minor decrease in 2021 compared to 2020, the overall trend is strongly upward, suggesting substantial asset accumulation or investment over time.
- Total Asset Turnover
- The total asset turnover ratio declined steadily during the period, dropping from 0.34 in 2018 to 0.20 in 2022. This decreasing ratio implies that the efficiency of asset use in generating revenues has diminished. Even with increased asset levels, revenue generation per asset unit has weakened, particularly in the latter years.
In summary, while net revenues initially increased and then dipped, total assets expanded consistently, resulting in a declining asset turnover ratio. This pattern may indicate a shift towards a larger, more capital-intensive asset base with comparatively lower revenue productivity per asset unit over time.
Equity Turnover
Roper Technologies Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net revenues | 5,371,800) | 5,777,800) | 5,527,100) | 5,366,800) | 5,191,200) | |
| Stockholders’ equity | 16,037,800) | 11,563,800) | 10,479,800) | 9,491,900) | 7,738,500) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 0.33 | 0.50 | 0.53 | 0.57 | 0.67 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Apple Inc. | 7.78 | 5.80 | 4.20 | 2.88 | — | |
| Arista Networks Inc. | 0.90 | 0.74 | 0.70 | — | — | |
| Cisco Systems Inc. | 1.30 | 1.21 | 1.30 | 1.55 | — | |
| Dell Technologies Inc. | — | 38.01 | — | — | — | |
| Super Micro Computer Inc. | 3.64 | 3.25 | 3.13 | 3.72 | — | |
| Equity Turnover, Sector | ||||||
| Technology Hardware & Equipment | 5.86 | 4.61 | 3.97 | — | — | |
| Equity Turnover, Industry | ||||||
| Information Technology | 1.74 | 1.80 | 1.82 | — | — | |
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).
1 2022 Calculation
Equity turnover = Net revenues ÷ Stockholders’ equity
= 5,371,800 ÷ 16,037,800 = 0.33
2 Click competitor name to see calculations.
- Net Revenues
- The net revenues show an overall increasing trend from 2018 through 2021, rising from 5,191,200 thousand US dollars to a peak of 5,777,800 thousand US dollars. However, in 2022, there is a noticeable decline to 5,371,800 thousand US dollars, indicating a decrease after several years of growth.
- Stockholders’ Equity
- Stockholders’ equity demonstrates consistent and significant growth throughout the entire period. Starting at 7,738,500 thousand US dollars in 2018, it rises steadily to 16,037,800 thousand US dollars by the end of 2022, more than doubling over five years.
- Equity Turnover
- Equity turnover shows a clear declining pattern over the years analyzed. It decreases from 0.67 in 2018 to 0.33 in 2022. This reflects a reduced efficiency in generating revenues from the equity base, as the company’s stockholders' equity is growing faster than its net revenues.