Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Roper Technologies Inc., short-term (operating) activity ratios (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).
The analysis of the quarterly financial ratios indicates several trends and notable shifts in the company's operational efficiency and cash flow management over the observed periods.
- Inventory Turnover
- Inventory turnover ratios remained relatively stable around 9.3 to 10 from 2019 through early 2021, showing a consistent efficiency in managing inventory. A marked increase begins in mid-2022, peaking at a high of 18.84, before settling to approximately 14.7 in 2023. This suggests a significant improvement in inventory management efficiency or a faster rate of inventory movement during the later periods.
- Receivables Turnover
- This ratio fluctuates moderately across the periods, mostly ranging between 6.4 and 8.9. After a slight dip around late 2019 and early 2020, the ratio improves notably by mid-2022, reaching near 8.86, before slightly declining but remaining above previous years’ averages. These changes indicate some improvement in the company's collection efficiency post-2021.
- Payables Turnover
- Payables turnover shows variability with no strong long-term trend. The ratio shifts between roughly 9.2 and 13.9, with peaks in late 2021 and mid-2022, suggesting periods of faster payables processing and potentially more favorable payment terms or management of supplier relationships during these times.
- Working Capital Turnover
- Data for working capital turnover is sparse and inconsistent, but available figures from 2020 onwards show a lower turnover compared to 2019, dropping significantly to a low near 3.05 in mid-2022 before slightly recovering. This decline may reflect increased working capital relative to sales or less efficient use of these current assets and liabilities in recent periods.
- Average Inventory Processing Period
- The average duration inventory is held oscillates mostly between 33 and 41 days, with a notable decrease to around 19-25 days from mid-2022 onwards. This decrease corresponds with the rise in inventory turnover, confirming faster inventory cycling in the later periods.
- Average Receivable Collection Period
- The collection period varied from 41 to 57 days over the years, peaking in late 2020 and fluctuating thereafter. Post mid-2022, it generally trends shorter, averaging around 41 to 45 days, indicating quicker cash collection from customers in recent quarters.
- Operating Cycle
- The operating cycle, combining inventory and receivables periods, generally ranged from 74 to 93 days before mid-2022. From mid-2022, a significant reduction is evident, reaching a low of 60 days and fluctuating slightly thereafter. This improvement connects to faster inventory turnover and receivables collection, enhancing operational efficiency.
- Average Payables Payment Period
- The payables payment period varied between 26 and 40 days throughout the quarters. It lengthened notably during 2020 and early 2021, suggesting the company extended payment terms or delayed payments during this period, possibly as a cash management strategy. Afterward, payment periods shortened, stabilizing near 27–29 days in recent quarters.
- Cash Conversion Cycle
- The cash conversion cycle, reflecting the net days cash is tied up, ranged roughly from 33 to 61 days. It peaked near 61 days in late 2019, decreased sharply to around 33 days by mid-2022, and then moderately increased to the low 40s in 2023. This overall shortening signifies improved cash flow management, facilitated by faster inventory turnover, quicker receivables collection, and controlled payment periods.
Overall, the data illustrates a trend toward improved operational efficiency and working capital management starting from around mid-2022. The company achieved faster inventory and receivables turnover combined with a shorter operating and cash conversion cycle, which generally indicates enhanced liquidity and cash flow performance. The fluctuating but controlled payables payment period suggests deliberate balancing between suppliers’ terms and internal cash needs.
Turnover Ratios
Average No. Days
Inventory Turnover
Roper Technologies Inc., inventory turnover calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Cost of sales | 467,100) | 464,100) | 451,100) | 428,600) | 408,500) | 399,300) | 382,600) | 494,300) | 466,700) | 459,300) | 440,100) | 538,700) | 490,200) | 461,300) | 493,900) | 501,900) | 480,900) | 480,300) | 476,600) | ||||||
| Inventories, net | 122,500) | 118,000) | 115,000) | 111,300) | 101,000) | 92,500) | 202,700) | 176,100) | 174,400) | 212,700) | 206,000) | 198,400) | 214,900) | 216,600) | 206,200) | 198,600) | 205,000) | 203,500) | 207,500) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Inventory turnover1 | 14.78 | 14.85 | 14.67 | 14.55 | 16.68 | 18.84 | 8.89 | 10.56 | 10.92 | 9.07 | 9.37 | 10.00 | 9.06 | 8.95 | 9.49 | 9.77 | 9.47 | 9.53 | 9.33 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||||
| Apple Inc. | 29.54 | 29.24 | 32.36 | 45.20 | 40.43 | 40.07 | 36.69 | 32.37 | 39.55 | 37.48 | 36.21 | — | — | — | — | — | — | — | — | ||||||
| Arista Networks Inc. | 1.16 | 1.12 | 1.15 | 1.32 | 1.36 | 1.53 | 1.65 | 1.64 | 1.74 | 1.75 | 1.85 | — | — | — | — | — | — | — | — | ||||||
| Cisco Systems Inc. | 6.01 | 6.45 | 7.41 | 7.52 | 8.52 | 9.19 | 10.06 | 11.50 | 11.15 | 11.98 | 13.25 | — | — | — | — | — | — | — | — | ||||||
| Dell Technologies Inc. | 13.40 | 14.38 | 13.11 | 13.45 | 13.76 | 16.63 | 17.53 | 19.05 | 18.62 | 17.40 | 17.47 | — | — | — | — | — | — | — | — | ||||||
| Super Micro Computer Inc. | 3.49 | 3.84 | 2.88 | 2.84 | 2.50 | 2.58 | 2.77 | 2.90 | 3.18 | 3.39 | 3.59 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q3 2023 Calculation
Inventory turnover
= (Cost of salesQ3 2023
+ Cost of salesQ2 2023
+ Cost of salesQ1 2023
+ Cost of salesQ4 2022)
÷ Inventories, net
= (467,100 + 464,100 + 451,100 + 428,600)
÷ 122,500 = 14.78
2 Click competitor name to see calculations.
The quarterly financial data reveals several important trends regarding cost of sales, inventories, and inventory turnover over the observed periods.
- Cost of Sales
- The cost of sales fluctuated across the reported quarters, peaking notably in late 2020. From early 2019 through 2019, the figures were relatively stable with a slight upward trend, increasing from approximately $476.6 million to $501.9 million. In 2020, a decline was observed in the middle quarters, mainly in the second quarter, followed by a sharp rise in the fourth quarter reaching about $538.7 million, the highest recorded value in the data set. During 2021, the cost of sales decreased steadily, settling around $494.3 million by year-end. A substantial drop occurred in the first quarter of 2022, with values dropping to the $382.6 million range, which marked the lowest level in the entire dataset, followed by a gradual increase through 2023, approaching $467.1 million by the third quarter.
- Inventories, Net
- Inventories showed some variability but displayed an overall declining trend starting from 2019 through the end of 2021. The inventory levels began at $207.5 million in early 2019 and largely hovered near $200 million until 2021, where a notable descent occurred beginning in the third quarter of 2021, reaching a trough of $92.5 million in the first quarter of 2022. After this substantial reduction, inventories started to recover moderately, rising to $122.5 million by late 2023. This pattern indicates a significant inventory reduction effort around 2021-2022, followed by a steady replenishment phase thereafter.
- Inventory Turnover
- Inventory turnover ratios provide insight into how efficiently inventories were managed. Initially, from 2019 to early 2020, the turnover ratio remained relatively stable, hovering around 9.3 to 10 times annually. Substantial changes were observed starting in 2021, where the ratio surged dramatically from approximately 8.9 in the first quarter of 2022 to an exceptional high of 18.84 in the second quarter of 2022. This spike corresponds to the period of significantly reduced inventories noted previously, suggesting an acceleration in inventory sales or more efficient inventory utilization. Although the turnover ratio slightly declined after this peak, it stabilized at elevated levels between 14.5 and 14.85 through 2023, substantially higher than in prior years. This sustained increase indicates a continued improvement in inventory management efficiency following the significant inventory reduction phase.
Receivables Turnover
Roper Technologies Inc., receivables turnover calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Net revenues | 1,563,400) | 1,531,200) | 1,469,700) | 1,430,900) | 1,350,300) | 1,310,800) | 1,279,800) | 1,512,300) | 1,462,800) | 1,426,600) | 1,376,100) | 1,505,300) | 1,366,100) | 1,305,000) | 1,350,700) | 1,394,800) | 1,354,500) | 1,330,300) | 1,287,200) | ||||||
| Accounts receivable, net | 746,400) | 684,400) | 629,100) | 724,500) | 630,300) | 628,500) | 755,300) | 839,400) | 749,400) | 804,200) | 792,000) | 863,000) | 773,400) | 738,800) | 712,200) | 791,600) | 697,600) | 698,200) | 629,300) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Receivables turnover1 | 8.03 | 8.45 | 8.84 | 7.41 | 8.65 | 8.86 | 7.52 | 6.88 | 7.70 | 7.06 | 7.01 | 6.40 | 7.00 | 7.32 | 7.62 | 6.78 | 7.67 | 7.61 | 8.38 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||||
| Apple Inc. | 19.64 | 21.47 | 16.32 | 13.99 | 17.77 | 18.55 | 12.52 | 13.92 | 19.87 | 17.59 | 10.85 | — | — | — | — | — | — | — | — | ||||||
| Arista Networks Inc. | 6.71 | 6.75 | 5.63 | 4.75 | 6.03 | 5.98 | 4.87 | 5.71 | 7.01 | 7.22 | 6.47 | — | — | — | — | — | — | — | — | ||||||
| Cisco Systems Inc. | 10.76 | 10.15 | 9.61 | 7.79 | 8.92 | 8.59 | 9.57 | 8.64 | 11.04 | 11.15 | 12.08 | — | — | — | — | — | — | — | — | ||||||
| Dell Technologies Inc. | 9.21 | 7.96 | 8.85 | 7.84 | 7.01 | 7.46 | 8.70 | 7.37 | 8.10 | 7.86 | 8.53 | — | — | — | — | — | — | — | — | ||||||
| Super Micro Computer Inc. | 9.78 | 8.65 | 8.17 | 6.23 | 6.81 | 8.38 | 8.36 | 7.67 | 8.31 | 10.10 | 10.23 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q3 2023 Calculation
Receivables turnover
= (Net revenuesQ3 2023
+ Net revenuesQ2 2023
+ Net revenuesQ1 2023
+ Net revenuesQ4 2022)
÷ Accounts receivable, net
= (1,563,400 + 1,531,200 + 1,469,700 + 1,430,900)
÷ 746,400 = 8.03
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends across the periods examined. Net revenues, expressed in thousands of US dollars, exhibit a general upward trajectory with periodic fluctuations. Starting from 1,287,200 in the first quarter of 2019, net revenues increased steadily, peaking at 1,512,300 by the end of 2021. However, a decline is observed in early 2022, with revenues dipping to 1,279,800 but subsequently recovering and reaching a new high of 1,563,400 by the third quarter of 2023. This pattern suggests resilience and growth despite short-term downward shifts.
Accounts receivable, net, also expressed in thousands of US dollars, display significant variation over the same timeline. Initially, accounts receivable increased from 629,300 to 863,000 by the end of 2020, implying an expansion in credit sales or slower collections. Subsequently, there was a noticeable decline in 2022, reaching a low of 628,500 in the second quarter, before climbing again to 746,400 in the latest quarter of 2023. The fluctuations indicate shifts in receivables management, potentially reflecting changes in customer payment behavior or internal credit policies.
The receivables turnover ratio provides insight into the efficiency of collecting receivables. Early in the period, turnover diminished steadily from 8.38 to a trough of 6.4, reached in the last quarter of 2020. This trend coincides with the increase in accounts receivable and suggests a slower collection cycle. After this low point, the turnover ratio showed improvement, rebounding to 8.86 in the second quarter of 2022, signaling enhanced collection effectiveness. The ratio then stabilized around 8 with slight variations, indicating a return to more efficient receivables management.
- Net Revenues
- Overall upward trend with peak values at year-end 2021, followed by a dip in early 2022 and subsequent recovery to record highs by late 2023.
- Accounts Receivable, Net
- Marked increase through 2020, suggesting slower collection, followed by a sharp decrease in 2022 and a recovery phase towards the latest period.
- Receivables Turnover Ratio
- Declined through 2020 indicating slower collection cycles, then improved and stabilized above prior levels during 2022 and 2023, reflecting better receivables management.
In summary, the data depicts a company experiencing growth in revenues with associated challenges in managing receivables effectively during 2020. Improvements in receivables turnover from 2021 onward suggest corrective measures or favorable changes in collection dynamics. The later periods reflect a return to operational efficiency and revenue growth momentum.
Payables Turnover
Roper Technologies Inc., payables turnover calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Cost of sales | 467,100) | 464,100) | 451,100) | 428,600) | 408,500) | 399,300) | 382,600) | 494,300) | 466,700) | 459,300) | 440,100) | 538,700) | 490,200) | 461,300) | 493,900) | 501,900) | 480,900) | 480,300) | 476,600) | ||||||
| Accounts payable | 135,800) | 141,100) | 134,000) | 122,600) | 121,200) | 128,800) | 167,800) | 150,800) | 146,900) | 209,600) | 190,900) | 177,800) | 173,100) | 185,400) | 180,800) | 162,000) | 156,800) | 162,200) | 172,600) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Payables turnover1 | 13.34 | 12.42 | 12.59 | 13.21 | 13.90 | 13.53 | 10.74 | 12.34 | 12.97 | 9.20 | 10.11 | 11.16 | 11.25 | 10.45 | 10.82 | 11.97 | 12.38 | 11.95 | 11.22 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||
| Apple Inc. | 4.65 | 5.10 | 3.81 | 3.49 | 4.54 | 4.15 | 2.90 | 3.89 | 5.07 | 4.88 | 2.82 | — | — | — | — | — | — | — | — | ||||||
| Arista Networks Inc. | 8.16 | 5.95 | 5.84 | 7.33 | 5.39 | 4.74 | 5.61 | 5.27 | 7.39 | 6.54 | 6.52 | — | — | — | — | — | — | — | — | ||||||
| Cisco Systems Inc. | 8.55 | 8.69 | 8.53 | 8.47 | 8.31 | 9.00 | 8.15 | 7.59 | 7.22 | 9.22 | 7.53 | — | — | — | — | — | — | — | — | ||||||
| Dell Technologies Inc. | 3.67 | 3.34 | 3.22 | 2.92 | 2.80 | 3.05 | 3.11 | 2.99 | 3.19 | 3.21 | 3.43 | — | — | — | — | — | — | — | — | ||||||
| Super Micro Computer Inc. | 8.38 | 9.76 | 6.38 | 6.71 | 5.09 | 5.18 | 5.82 | 4.94 | 6.18 | 6.91 | 8.33 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q3 2023 Calculation
Payables turnover
= (Cost of salesQ3 2023
+ Cost of salesQ2 2023
+ Cost of salesQ1 2023
+ Cost of salesQ4 2022)
÷ Accounts payable
= (467,100 + 464,100 + 451,100 + 428,600)
÷ 135,800 = 13.34
2 Click competitor name to see calculations.
The analysis of the quarterly financial data over the examined periods reveals distinct trends in cost of sales, accounts payable, and payables turnover ratio.
- Cost of Sales
- The cost of sales demonstrates a fluctuating but generally declining trend from early 2019 through 2023. Initially, the cost of sales ranged near the upper 400,000s (in thousands of US dollars) and peaked above 538,700 in the fourth quarter of 2020. Following this peak, there is an observable downward movement, with the cost dropping below 430,000 by late 2022 and then experiencing moderate increases toward the latter quarters of 2023. This suggests a period of elevated cost pressures around 2020 followed by overall normalization and improvement in cost management or sales mix in recent periods.
- Accounts Payable
- Accounts payable amounts show variability without a stable trend, with figures fluctuating between approximately 121,200 and 209,600 (in thousands). There is a notable spike in mid-2021, reaching above 209,600 followed by a steady decline throughout late 2021 and 2022. By 2023, accounts payable show moderate improvement but remain below the mid-2021 high. This variability may indicate changes in supplier payment terms, procurement volume, or working capital management policies across quarters.
- Payables Turnover Ratio
- The payables turnover ratio exhibits significant volatility, with values ranging approximately between 9.2 and 13.9. Early 2019 to early 2020 reflects ratios mostly around 11 to 12, followed by a dip during mid-2020, reaching the lowest point near 9.2 in mid-2021. Subsequently, the ratio increases markedly, peaking at approximately 13.9 in late 2022, indicating faster payment cycles to suppliers during that period. The turnover slightly adjusts lower but remains elevated through 2023, demonstrating a relatively accelerated payables turnover compared to earlier periods. The fluctuations in this ratio suggest variability in payment speed and potentially altered liquidity management or supplier negotiation strategies.
Overall, the financial data indicate a period of cost and payable fluctuations influenced perhaps by external market events or internal strategic changes, followed by efforts toward more efficient payment cycles and cost control in recent quarters.
Working Capital Turnover
Roper Technologies Inc., working capital turnover calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Current assets | 1,504,500) | 2,606,100) | 2,232,200) | 1,932,400) | 3,991,400) | 4,992,000) | 4,485,600) | 2,421,100) | 2,375,200) | 1,796,700) | 1,739,400) | 1,752,300) | 1,706,200) | 3,179,200) | 2,273,400) | 1,999,500) | 1,619,400) | 1,602,300) | 1,586,000) | ||||||
| Less: Current liabilities | 2,812,700) | 2,763,900) | 2,775,400) | 2,892,500) | 2,840,400) | 3,166,100) | 3,501,800) | 3,121,800) | 2,861,100) | 2,503,100) | 2,462,900) | 2,444,400) | 2,339,900) | 2,498,600) | 2,366,100) | 2,397,400) | 1,500,900) | 1,443,200) | 1,444,700) | ||||||
| Working capital | (1,308,200) | (157,800) | (543,200) | (960,100) | 1,151,000) | 1,825,900) | 983,800) | (700,700) | (485,900) | (706,400) | (723,500) | (692,100) | (633,700) | 680,600) | (92,700) | (397,900) | 118,500) | 159,100) | 141,300) | ||||||
| Net revenues | 1,563,400) | 1,531,200) | 1,469,700) | 1,430,900) | 1,350,300) | 1,310,800) | 1,279,800) | 1,512,300) | 1,462,800) | 1,426,600) | 1,376,100) | 1,505,300) | 1,366,100) | 1,305,000) | 1,350,700) | 1,394,800) | 1,354,500) | 1,330,300) | 1,287,200) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Working capital turnover1 | — | — | — | — | 4.74 | 3.05 | 5.78 | — | — | — | — | — | — | 7.94 | — | — | 45.13 | 33.39 | 37.34 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||
| Apple Inc. | — | — | — | — | — | — | 67.80 | 39.10 | 52.06 | 21.58 | 13.62 | — | — | — | — | — | — | — | — | ||||||
| Arista Networks Inc. | 0.96 | 1.01 | 1.04 | 1.03 | 1.04 | 1.01 | 0.85 | 0.80 | 0.76 | 0.76 | 0.77 | — | — | — | — | — | — | — | — | ||||||
| Cisco Systems Inc. | 4.89 | 4.72 | 4.65 | 4.65 | 4.36 | 4.74 | 3.54 | 3.88 | 3.82 | 2.89 | 3.00 | — | — | — | — | — | — | — | — | ||||||
| Dell Technologies Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Super Micro Computer Inc. | 4.05 | 3.84 | 3.94 | 3.89 | 3.91 | 3.81 | 4.09 | 3.96 | 3.95 | 3.74 | 3.71 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q3 2023 Calculation
Working capital turnover
= (Net revenuesQ3 2023
+ Net revenuesQ2 2023
+ Net revenuesQ1 2023
+ Net revenuesQ4 2022)
÷ Working capital
= (1,563,400 + 1,531,200 + 1,469,700 + 1,430,900)
÷ -1,308,200 = —
2 Click competitor name to see calculations.
- Working Capital
- The working capital fluctuated significantly over the observed period. It began with positive values in early 2019, peaking at approximately $159 million by June 2019, but experienced a sharp decline at the end of 2019, turning negative and reaching around -$397.9 million in December 2019. Throughout 2020 and 2021, working capital remained volatile and mostly negative, hitting lows near -$700 million. From early 2022, a noticeable recovery occurred with values rising to a positive peak of roughly $1 billion by June 2022. However, this improvement was short-lived as it declined again sharply in the latter half of 2022 and worsened throughout 2023, ending near -$1.3 billion by September 2023.
- Net Revenues
- Net revenues demonstrated a generally upward trend across the entire timeframe. Starting at approximately $1.29 billion in Q1 2019, revenues showed gradual increases quarter over quarter, with some minor fluctuations. The lowest point was observed in Q2 2020 at $1.305 billion, which corresponds with a period of economic uncertainty. Following this, revenues steadily increased, surpassing $1.5 billion by the end of 2021. After a slight dip in Q1 2022 to about $1.28 billion, revenues resumed their growth trajectory, reaching the highest value recorded of roughly $1.56 billion in Q3 2023.
- Working Capital Turnover
- Data on working capital turnover is sporadic and incomplete, yet it suggests considerable variation. The ratio was relatively high in the first three quarters of 2019, peaking near 45.13. Afterward, the data becomes largely missing, with only isolated figures available, such as 7.94 in the second quarter of 2020 and 5.78, 3.05, and 4.74 in parts of 2022. The early high turnover ratios imply efficient use of working capital relative to revenue during that period, while later data gaps prevent a comprehensive analysis. The lower figures in 2022 suggest a decline in efficiency or changes in working capital management during that time.
- Overall Analysis
- Despite positive growth in net revenues, the working capital position has been unstable, with multiple periods of negative values indicating potential liquidity challenges. The sharp fluctuations in working capital, coupled with variable working capital turnover ratios, suggest inconsistent management of short-term assets and liabilities. The rise in net revenues, particularly post-2020, points to strong sales performance or pricing improvements. However, the inability to sustain positive working capital concurrently may warrant further investigation into operational efficiency or changes in capital structure. The volatility in working capital also potentially impacts the firm’s liquidity and its ability to fund ongoing operations without additional financing sources.
Average Inventory Processing Period
Roper Technologies Inc., average inventory processing period calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||
| Inventory turnover | 14.78 | 14.85 | 14.67 | 14.55 | 16.68 | 18.84 | 8.89 | 10.56 | 10.92 | 9.07 | 9.37 | 10.00 | 9.06 | 8.95 | 9.49 | 9.77 | 9.47 | 9.53 | 9.33 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average inventory processing period1 | 25 | 25 | 25 | 25 | 22 | 19 | 41 | 35 | 33 | 40 | 39 | 36 | 40 | 41 | 38 | 37 | 39 | 38 | 39 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||||
| Apple Inc. | 12 | 12 | 11 | 8 | 9 | 9 | 10 | 11 | 9 | 10 | 10 | — | — | — | — | — | — | — | — | ||||||
| Arista Networks Inc. | 315 | 325 | 318 | 276 | 268 | 239 | 221 | 222 | 210 | 209 | 197 | — | — | — | — | — | — | — | — | ||||||
| Cisco Systems Inc. | 61 | 57 | 49 | 49 | 43 | 40 | 36 | 32 | 33 | 30 | 28 | — | — | — | — | — | — | — | — | ||||||
| Dell Technologies Inc. | 27 | 25 | 28 | 27 | 27 | 22 | 21 | 19 | 20 | 21 | 21 | — | — | — | — | — | — | — | — | ||||||
| Super Micro Computer Inc. | 105 | 95 | 127 | 128 | 146 | 141 | 132 | 126 | 115 | 108 | 102 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q3 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 14.78 = 25
2 Click competitor name to see calculations.
The analysis of the quarterly inventory metrics reveals several notable trends over the period examined. The inventory turnover ratio exhibited relative stability from early 2019 through early 2021, generally fluctuating between approximately 8.95 and 10.92. A significant increase is observed beginning in the first quarter of 2022, with the ratio nearly doubling compared to prior periods, reaching a peak of 18.84 in June 2022 before gradually declining slightly yet remaining elevated around 14.7 in the third quarter of 2023.
This marked improvement in inventory turnover indicates a more efficient inventory management process or a higher rate of sales relative to inventory holdings in recent quarters.
Correspondingly, the average inventory processing period, measured in days, aligns inversely with the inventory turnover ratio throughout the timeframe. It maintained a steady range of approximately 33 to 41 days from 2019 to early 2022. Commencing in the first quarter of 2022, there is a sharp reduction in the processing period, dropping to a low of 19 days, before slightly increasing and stabilizing around 25 days by the third quarter of 2023.
- Inventory Turnover Ratio
- Remained relatively stable around 9 to 10 from March 2019 to December 2021.
- Experienced a substantial increase to nearly 19 in mid-2022.
- After peaking, it declined somewhat but stayed above 14 through the third quarter of 2023.
- Average Inventory Processing Period
- Held steady between 33 and 41 days before 2022.
- Dropped sharply to 19 days in early 2022, indicating faster inventory turnover.
- Subsequently rose to around 25 days and stabilized through 2023.
Overall, the data indicates enhanced inventory efficiency starting in 2022, with the company managing to reduce the time inventory remains on hand significantly. This may reflect improvements in supply chain processes, demand forecasting, or sales execution that led to accelerated inventory cycles. The stabilization of these metrics in mid-2022 through 2023 suggests the company has adjusted to a new operational pace, maintaining improved inventory management performance compared to previous years.
Average Receivable Collection Period
Roper Technologies Inc., average receivable collection period calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||
| Receivables turnover | 8.03 | 8.45 | 8.84 | 7.41 | 8.65 | 8.86 | 7.52 | 6.88 | 7.70 | 7.06 | 7.01 | 6.40 | 7.00 | 7.32 | 7.62 | 6.78 | 7.67 | 7.61 | 8.38 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average receivable collection period1 | 45 | 43 | 41 | 49 | 42 | 41 | 49 | 53 | 47 | 52 | 52 | 57 | 52 | 50 | 48 | 54 | 48 | 48 | 44 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||||
| Apple Inc. | 19 | 17 | 22 | 26 | 21 | 20 | 29 | 26 | 18 | 21 | 34 | — | — | — | — | — | — | — | — | ||||||
| Arista Networks Inc. | 54 | 54 | 65 | 77 | 61 | 61 | 75 | 64 | 52 | 51 | 56 | — | — | — | — | — | — | — | — | ||||||
| Cisco Systems Inc. | 34 | 36 | 38 | 47 | 41 | 43 | 38 | 42 | 33 | 33 | 30 | — | — | — | — | — | — | — | — | ||||||
| Dell Technologies Inc. | 40 | 46 | 41 | 47 | 52 | 49 | 42 | 50 | 45 | 46 | 43 | — | — | — | — | — | — | — | — | ||||||
| Super Micro Computer Inc. | 37 | 42 | 45 | 59 | 54 | 44 | 44 | 48 | 44 | 36 | 36 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q3 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.03 = 45
2 Click competitor name to see calculations.
The analysis of the quarterly financial ratios related to receivables over the observed period reveals several notable trends and fluctuations that provide insight into the company's credit and collection efficiency.
- Receivables Turnover Ratio
- This ratio demonstrates variability across quarters, reflecting changes in how efficiently the company collects its outstanding receivables. Starting at a relatively high ratio of 8.38 in the first quarter of 2019, it experienced a downward trend throughout 2019, reaching a low of 6.4 by the end of 2020. This indicates a period of slower collections or increased credit sales relative to receivables.
- From early 2021, the ratio showed some improvement, peaking at 8.86 in the second quarter of 2022, suggesting enhanced efficiency in receivables management during this period. However, subsequent quarters saw a moderate decline, settling around 8.03 by the third quarter of 2023, which still reflects a stronger position compared to the lows observed at the end of 2020.
- Average Receivable Collection Period (Days)
- The average number of days to collect receivables inversely correlates with the turnover ratio and shows a corresponding pattern. Initially, the collection period increased from 44 days in early 2019 to a peak of 57 days at the end of 2020, indicating slower cash inflows from credit sales.
- Following this peak, there was a marked improvement in collection efficiency with the period decreasing to as low as 41 days in mid-2022 and early 2023, suggesting faster collections. Nevertheless, a slight reversal occurred toward the latter quarters, with the collection period rising again to 45 days by Q3 2023.
Overall, the data reflects cyclical changes in the company's receivables management, with notable challenges in efficiency around 2020, followed by recovery and improvement over 2021 and 2022. Despite some recent minor setbacks, the current collection periods and turnover ratios indicate a relatively effective receivables management system compared to earlier periods in the dataset.
Operating Cycle
Roper Technologies Inc., operating cycle calculation (quarterly data)
No. days
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||
| Average inventory processing period | 25 | 25 | 25 | 25 | 22 | 19 | 41 | 35 | 33 | 40 | 39 | 36 | 40 | 41 | 38 | 37 | 39 | 38 | 39 | ||||||
| Average receivable collection period | 45 | 43 | 41 | 49 | 42 | 41 | 49 | 53 | 47 | 52 | 52 | 57 | 52 | 50 | 48 | 54 | 48 | 48 | 44 | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Operating cycle1 | 70 | 68 | 66 | 74 | 64 | 60 | 90 | 88 | 80 | 92 | 91 | 93 | 92 | 91 | 86 | 91 | 87 | 86 | 83 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||||
| Apple Inc. | 31 | 29 | 33 | 34 | 30 | 29 | 39 | 37 | 27 | 31 | 44 | — | — | — | — | — | — | — | — | ||||||
| Arista Networks Inc. | 369 | 379 | 383 | 353 | 329 | 300 | 296 | 286 | 262 | 260 | 253 | — | — | — | — | — | — | — | — | ||||||
| Cisco Systems Inc. | 95 | 93 | 87 | 96 | 84 | 83 | 74 | 74 | 66 | 63 | 58 | — | — | — | — | — | — | — | — | ||||||
| Dell Technologies Inc. | 67 | 71 | 69 | 74 | 79 | 71 | 63 | 69 | 65 | 67 | 64 | — | — | — | — | — | — | — | — | ||||||
| Super Micro Computer Inc. | 142 | 137 | 172 | 187 | 200 | 185 | 176 | 174 | 159 | 144 | 138 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q3 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 25 + 45 = 70
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period shows fluctuations over the analyzed quarters. Initially, the period remained relatively stable around 37 to 41 days from early 2019 to early 2021. Noticeably, there is a sharp decline beginning in the first quarter of 2022, dropping to as low as 19 days at the end of the first quarter, followed by a gradual increase towards 25 days in the most recent quarters. This suggests an improvement in inventory management efficiency starting in 2022, with quicker turnover times compared to previous years, although a slight lengthening is observed more recently.
- Average Receivable Collection Period
- The average receivable collection period exhibits some variability, generally ranging between 41 and 57 days. In 2019 and 2020, the collection period showed a tendency to increase, peaking around the 57-day mark in the final quarter of 2020. From 2021 onward, the period displays a mixed trend with a moderate decline in early 2022, reaching into the low 40s, followed by slight increases and decreases in subsequent quarters. Overall, the collection period appears to have stabilized somewhat in the 40-45 day range towards the latest quarters, indicating some improvement in the management of receivables compared to the higher values seen in 2020.
- Operating Cycle
- The operating cycle, representing the total time to convert inventory and receivables into cash, generally follows the pattern of its components. Early in the observation period, from 2019 to early 2021, the operating cycle remained largely steady between 83 and 93 days. Notably, from 2022 onward, there is a pronounced reduction in the operating cycle to around 60 days in the first quarter of 2022, followed by some moderate increases in subsequent quarters, settling near 70 days by the third quarter of 2023. This decrease reflects improved operational efficiency, primarily driven by faster inventory processing and somewhat better receivables collection, although the slight uptick toward the end indicates some challenges in maintaining the reduced cycle.
Average Payables Payment Period
Roper Technologies Inc., average payables payment period calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||
| Payables turnover | 13.34 | 12.42 | 12.59 | 13.21 | 13.90 | 13.53 | 10.74 | 12.34 | 12.97 | 9.20 | 10.11 | 11.16 | 11.25 | 10.45 | 10.82 | 11.97 | 12.38 | 11.95 | 11.22 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average payables payment period1 | 27 | 29 | 29 | 28 | 26 | 27 | 34 | 30 | 28 | 40 | 36 | 33 | 32 | 35 | 34 | 30 | 29 | 31 | 33 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||
| Apple Inc. | 79 | 72 | 96 | 105 | 80 | 88 | 126 | 94 | 72 | 75 | 129 | — | — | — | — | — | — | — | — | ||||||
| Arista Networks Inc. | 45 | 61 | 62 | 50 | 68 | 77 | 65 | 69 | 49 | 56 | 56 | — | — | — | — | — | — | — | — | ||||||
| Cisco Systems Inc. | 43 | 42 | 43 | 43 | 44 | 41 | 45 | 48 | 51 | 40 | 48 | — | — | — | — | — | — | — | — | ||||||
| Dell Technologies Inc. | 99 | 109 | 113 | 125 | 130 | 120 | 117 | 122 | 114 | 114 | 107 | — | — | — | — | — | — | — | — | ||||||
| Super Micro Computer Inc. | 44 | 37 | 57 | 54 | 72 | 70 | 63 | 74 | 59 | 53 | 44 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q3 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 13.34 = 27
2 Click competitor name to see calculations.
The analysis of the payables turnover ratio over the observed quarters reveals a fluctuating pattern with notable variations across the periods. Starting from a ratio of 11.22 in March 2019, the turnover increased moderately until September 2019, reaching 12.38, indicating a faster rate of payables payment. However, a decline occurred in the first half of 2020, where the ratio dropped to around 10.45 by June 2020, reflecting a slower payment pace possibly influenced by market or operational conditions.
Subsequently, the turnover ratio saw a recovery and stabilizing trend toward the end of 2020, moving back above 11.0. During 2021, the turnover fluctuated significantly, with a marked dip to 9.2 in June 2021, suggesting a slower settlement of payables, followed by a sharp rise to nearly 13.0 in September 2021, indicating a swift payment turnaround in that quarter. This volatility could be attributed to strategic cash management adjustments or external financial factors.
From 2022 onwards, the payables turnover consistently remained elevated above 10.7, reaching peaks of 13.9 and 13.53 during the third and second quarters respectively, which points to an accelerated payables cycle relative to earlier years. The ratio slightly softened but stayed above 12 in the first three quarters of 2023, maintaining a relatively high turnover level compared to previous periods.
Examining the average payables payment period measured in days complements this insight. Beginning at 33 days in early 2019, the payment period shortened to 29 days by September 2019, corresponding with the earlier noted increase in payables turnover. It then lengthened again into mid-2020, peaking at 35 days, aligning with the period of reduced turnover ratio and indicating slower payments.
In 2021, the payment period was notably elongated to 40 days in June, concurrent with the turnover dip, followed by a sharp contraction to 28-30 days in the subsequent quarters, consistent with the spike in turnover. The years 2022 and 2023 show a mixed but generally shortened payment cycle, fluctuating mostly between 26 and 29 days, reflective of the consistently higher payables turnover, implying quicker payment practices.
Overall, both the payables turnover ratio and the average payables payment period demonstrate inverse relationships, as expected. The company appears to have experienced cycles of slower payment in 2020 and mid-2021, potentially influenced by external disruptions, followed by a deliberate acceleration of payables payments post-2021, stabilizing the payment period around the high twenties in days. These patterns may reflect adaptive financial management strategies aimed at optimizing cash flow and supplier relationships in varying economic circumstances.
Cash Conversion Cycle
Roper Technologies Inc., cash conversion cycle calculation (quarterly data)
No. days
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||
| Average inventory processing period | 25 | 25 | 25 | 25 | 22 | 19 | 41 | 35 | 33 | 40 | 39 | 36 | 40 | 41 | 38 | 37 | 39 | 38 | 39 | ||||||
| Average receivable collection period | 45 | 43 | 41 | 49 | 42 | 41 | 49 | 53 | 47 | 52 | 52 | 57 | 52 | 50 | 48 | 54 | 48 | 48 | 44 | ||||||
| Average payables payment period | 27 | 29 | 29 | 28 | 26 | 27 | 34 | 30 | 28 | 40 | 36 | 33 | 32 | 35 | 34 | 30 | 29 | 31 | 33 | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Cash conversion cycle1 | 43 | 39 | 37 | 46 | 38 | 33 | 56 | 58 | 52 | 52 | 55 | 60 | 60 | 56 | 52 | 61 | 58 | 55 | 50 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||||
| Apple Inc. | -48 | -43 | -63 | -71 | -50 | -59 | -87 | -57 | -45 | -44 | -85 | — | — | — | — | — | — | — | — | ||||||
| Arista Networks Inc. | 324 | 318 | 321 | 303 | 261 | 223 | 231 | 217 | 213 | 204 | 197 | — | — | — | — | — | — | — | — | ||||||
| Cisco Systems Inc. | 52 | 51 | 44 | 53 | 40 | 42 | 29 | 26 | 15 | 23 | 10 | — | — | — | — | — | — | — | — | ||||||
| Dell Technologies Inc. | -32 | -38 | -44 | -51 | -51 | -49 | -54 | -53 | -49 | -47 | -43 | — | — | — | — | — | — | — | — | ||||||
| Super Micro Computer Inc. | 98 | 100 | 115 | 133 | 128 | 115 | 113 | 100 | 100 | 91 | 94 | — | — | — | — | — | — | — | — | ||||||
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).
1 Q3 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 25 + 45 – 27 = 43
2 Click competitor name to see calculations.
- Inventory Processing Period
- The average inventory processing period fluctuated moderately over the analyzed quarters, ranging mostly between 25 and 41 days. Notably, there was a marked decline starting from March 2022, reaching a low of 19 days in June 2022, followed by a gradual increase stabilizing at 25 days through the first three quarters of 2023. This trend suggests an improvement in inventory turnover efficiency beginning in early 2022.
- Receivable Collection Period
- The average receivable collection period exhibited variability but generally remained within the range of 41 to 57 days. There was a peak around the fourth quarter of 2019 to early 2020, with the period extending to the mid to high 50s. From early 2022 onward, the collection period decreased, reaching a low of 41 days in March 2022, indicating an enhancement in collection efficiency. However, some fluctuations occurred afterward, with values rising slightly but remaining below prior peaks.
- Payables Payment Period
- The average payables payment period displayed more volatility, particularly during 2021 and 2022. Early in the period, it mostly ranged between 27 and 36 days, but significant dips to the high 20s and even 26 days occurred in mid-2022, suggesting quicker payment to creditors. The payment period experienced a slight increase toward the end of 2020 and into 2021, peaking at 40 days in June 2021, before declining again. This indicates fluctuations in supplier payment strategies or cash management policies over time.
- Cash Conversion Cycle
- The cash conversion cycle mirrored the trends observed in inventory, receivables, and payables, with values oscillating between 33 and 61 days. Notably, it peaked at 61 days at the end of 2019, indicating longer cash tied up in operations. From early 2022, a significant reduction occurred, reaching a low of 33 days in March 2022. Although there was some upward movement thereafter, the cycle remained below 50 days through 2023, suggesting more efficient working capital management in recent periods.