Stock Analysis on Net
Stock Analysis on Net

Roper Technologies Inc. (NASDAQ:ROP)

This company has been moved to the archive! The financial data has not been updated since November 2, 2023.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Roper Technologies Inc., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Federal 322,900 130,600 180,800 391,600 155,400
State 80,800 56,800 59,000 78,300 56,200
Foreign 65,900 94,500 77,400 79,800 105,100
Current 469,600 281,900 317,200 549,700 316,700
Federal (136,900) 28,000 (54,300) (43,100) (24,200)
State (31,100) (26,600) (7,600) 2,600 (25,800)
Foreign (5,200) 5,100 4,300 (49,700) (12,700)
Deferred (173,200) 6,500 (57,600) (90,200) (62,700)
Income tax expense 296,400 288,400 259,600 459,500 254,000

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).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Roper Technologies Inc. current decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Roper Technologies Inc. deferred increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Roper Technologies Inc. income tax expense increased from 2020 to 2021 and from 2021 to 2022.

Effective Income Tax Rate (EITR)

Roper Technologies Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Statutory federal income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Foreign operations, net 0.80% 2.60% 1.00% 0.20% 1.60%
R&D tax credits -3.00% -1.80% -1.40% -0.60% -0.90%
State taxes, net of federal benefit 3.70% 2.70% 3.10% 1.60% 2.40%
Stock-based compensation -1.00% -2.30% -3.00% -1.30% -3.10%
Impact of UK tax rate change 0.00% 1.70% 0.00% 0.00% 0.00%
Tax Cuts and Jobs Act of 2017, measurement period adjustments 0.00% 0.00% 0.00% 0.00% -1.20%
Divestitures 0.00% 0.00% 0.00% 1.80% 0.00%
Legal entity restructuring 0.80% -1.20% 0.00% -1.80% 0.00%
Other, net 0.80% 0.00% 0.80% -0.30% 1.40%
Effective income tax rate 23.10% 22.70% 21.50% 20.60% 21.20%

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).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Roper Technologies Inc. effective income tax rate increased from 2020 to 2021 and from 2021 to 2022.

Components of Deferred Tax Assets and Liabilities

Roper Technologies Inc., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Reserves and accrued expenses 192,400 195,800 187,600 169,600 156,500
Net operating loss carryforwards 84,600 101,500 154,600 111,200 67,900
R&D credits 8,900 12,500 26,300 4,100 6,100
Capitalized R&D expenditures 97,800 — — — —
Interest expense limitation carryforwards 41,100 10,900 63,000 9,900 4,500
Outside basis differences on assets held for sale — 57,500 — — 2,700
Lease liability 50,100 52,600 65,000 64,000 —
Deferred tax assets, less valuation allowance 474,900 430,800 496,500 358,800 237,700
Valuation allowance (37,100) (44,400) (38,000) (36,300) (26,400)
Deferred tax assets 437,800 386,400 458,500 322,500 211,300
Reserves and accrued expenses (12,000) (16,100) (23,800) (15,500) (14,300)
Amortizable intangible assets (1,818,700) (1,670,200) (1,803,300) (1,229,900) (1,043,000)
Plant and equipment — (3,800) (8,800) (10,800) (6,600)
Accrued tax on unremitted foreign earnings (5,800) (24,700) (18,600) (17,100) (16,300)
ROU asset (48,000) (50,000) (62,500) (61,700) —
Outside basis difference in Indicor (174,200) — — — (10,000)
Deferred tax liabilities (2,058,700) (1,764,800) (1,917,000) (1,335,000) (1,090,200)
Net deferred tax assets (liabilities) (1,620,900) (1,378,400) (1,458,500) (1,012,500) (878,900)

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).

Item Description The company
Deferred tax assets, less valuation allowance Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Roper Technologies Inc. deferred tax assets, less valuation allowance decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Roper Technologies Inc. deferred tax assets decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Roper Technologies Inc. net deferred tax assets (liabilities) increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Deferred Tax Assets and Liabilities, Classification

Roper Technologies Inc., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Deferred tax assets 55,900 101,100 104,000 95,600 52,200
Deferred tax liabilities 1,676,800 1,479,500 1,562,500 1,108,100 931,100

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).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Roper Technologies Inc. deferred tax assets decreased from 2020 to 2021 and from 2021 to 2022.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Roper Technologies Inc. deferred tax liabilities decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Adjustments to Financial Statements: Removal of Deferred Taxes

Roper Technologies Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported) 26,980,800 23,713,900 24,024,800 18,108,900 15,249,500
Less: Noncurrent deferred tax assets, net 55,900 101,100 104,000 95,600 52,200
Total assets (adjusted) 26,924,900 23,612,800 23,920,800 18,013,300 15,197,300
Adjustment to Total Liabilities
Total liabilities (as reported) 10,943,000 12,150,100 13,545,000 8,617,000 7,511,000
Less: Noncurrent deferred tax liabilities, net 1,676,800 1,479,500 1,562,500 1,108,100 931,100
Total liabilities (adjusted) 9,266,200 10,670,600 11,982,500 7,508,900 6,579,900
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 16,037,800 11,563,800 10,479,800 9,491,900 7,738,500
Less: Net deferred tax assets (liabilities) (1,620,900) (1,378,400) (1,458,500) (1,012,500) (878,900)
Stockholders’ equity (adjusted) 17,658,700 12,942,200 11,938,300 10,504,400 8,617,400
Adjustment to Net Earnings
Net earnings (as reported) 4,544,700 1,152,600 949,700 1,767,900 944,400
Add: Deferred income tax expense (benefit) (173,200) 6,500 (57,600) (90,200) (62,700)
Net earnings (adjusted) 4,371,500 1,159,100 892,100 1,677,700 881,700

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).

Roper Technologies Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Roper Technologies Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net Profit Margin
Reported net profit margin 84.60% 19.95% 17.18% 32.94% 18.19%
Adjusted net profit margin 81.38% 20.06% 16.14% 31.26% 16.98%
Total Asset Turnover
Reported total asset turnover 0.20 0.24 0.23 0.30 0.34
Adjusted total asset turnover 0.20 0.24 0.23 0.30 0.34
Financial Leverage
Reported financial leverage 1.68 2.05 2.29 1.91 1.97
Adjusted financial leverage 1.52 1.82 2.00 1.71 1.76
Return on Equity (ROE)
Reported ROE 28.34% 9.97% 9.06% 18.63% 12.20%
Adjusted ROE 24.76% 8.96% 7.47% 15.97% 10.23%
Return on Assets (ROA)
Reported ROA 16.84% 4.86% 3.95% 9.76% 6.19%
Adjusted ROA 16.24% 4.91% 3.73% 9.31% 5.80%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Roper Technologies Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Roper Technologies Inc. adjusted total asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Roper Technologies Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Roper Technologies Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Roper Technologies Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Roper Technologies Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net earnings 4,544,700 1,152,600 949,700 1,767,900 944,400
Net revenues 5,371,800 5,777,800 5,527,100 5,366,800 5,191,200
Profitability Ratio
Net profit margin1 84.60% 19.95% 17.18% 32.94% 18.19%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net earnings 4,371,500 1,159,100 892,100 1,677,700 881,700
Net revenues 5,371,800 5,777,800 5,527,100 5,366,800 5,191,200
Profitability Ratio
Adjusted net profit margin2 81.38% 20.06% 16.14% 31.26% 16.98%

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).

2022 Calculations

1 Net profit margin = 100 × Net earnings ÷ Net revenues
= 100 × 4,544,700 ÷ 5,371,800 = 84.60%

2 Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net revenues
= 100 × 4,371,500 ÷ 5,371,800 = 81.38%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Roper Technologies Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
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
Activity Ratio
Total asset turnover1 0.20 0.24 0.23 0.30 0.34
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Net revenues 5,371,800 5,777,800 5,527,100 5,366,800 5,191,200
Adjusted total assets 26,924,900 23,612,800 23,920,800 18,013,300 15,197,300
Activity Ratio
Adjusted total asset turnover2 0.20 0.24 0.23 0.30 0.34

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).

2022 Calculations

1 Total asset turnover = Net revenues ÷ Total assets
= 5,371,800 ÷ 26,980,800 = 0.20

2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 5,371,800 ÷ 26,924,900 = 0.20

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Roper Technologies Inc. adjusted total asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets 26,980,800 23,713,900 24,024,800 18,108,900 15,249,500
Stockholders’ equity 16,037,800 11,563,800 10,479,800 9,491,900 7,738,500
Solvency Ratio
Financial leverage1 1.68 2.05 2.29 1.91 1.97
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 26,924,900 23,612,800 23,920,800 18,013,300 15,197,300
Adjusted stockholders’ equity 17,658,700 12,942,200 11,938,300 10,504,400 8,617,400
Solvency Ratio
Adjusted financial leverage2 1.52 1.82 2.00 1.71 1.76

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).

2022 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 26,980,800 ÷ 16,037,800 = 1.68

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 26,924,900 ÷ 17,658,700 = 1.52

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Roper Technologies Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net earnings 4,544,700 1,152,600 949,700 1,767,900 944,400
Stockholders’ equity 16,037,800 11,563,800 10,479,800 9,491,900 7,738,500
Profitability Ratio
ROE1 28.34% 9.97% 9.06% 18.63% 12.20%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net earnings 4,371,500 1,159,100 892,100 1,677,700 881,700
Adjusted stockholders’ equity 17,658,700 12,942,200 11,938,300 10,504,400 8,617,400
Profitability Ratio
Adjusted ROE2 24.76% 8.96% 7.47% 15.97% 10.23%

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).

2022 Calculations

1 ROE = 100 × Net earnings ÷ Stockholders’ equity
= 100 × 4,544,700 ÷ 16,037,800 = 28.34%

2 Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted stockholders’ equity
= 100 × 4,371,500 ÷ 17,658,700 = 24.76%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Roper Technologies Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net earnings 4,544,700 1,152,600 949,700 1,767,900 944,400
Total assets 26,980,800 23,713,900 24,024,800 18,108,900 15,249,500
Profitability Ratio
ROA1 16.84% 4.86% 3.95% 9.76% 6.19%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net earnings 4,371,500 1,159,100 892,100 1,677,700 881,700
Adjusted total assets 26,924,900 23,612,800 23,920,800 18,013,300 15,197,300
Profitability Ratio
Adjusted ROA2 16.24% 4.91% 3.73% 9.31% 5.80%

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).

2022 Calculations

1 ROA = 100 × Net earnings ÷ Total assets
= 100 × 4,544,700 ÷ 26,980,800 = 16.84%

2 Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 4,371,500 ÷ 26,924,900 = 16.24%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Roper Technologies Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.