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.

Financial Reporting Quality: Aggregate Accruals

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Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Roper Technologies Inc., balance sheet computation of aggregate accruals

US$ in thousands

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Operating Assets
Total assets 26,980,800 23,713,900 24,024,800 18,108,900 15,249,500
Less: Cash and cash equivalents 792,800 351,500 308,300 709,700 364,400
Operating assets 26,188,000 23,362,400 23,716,500 17,399,200 14,885,100
Operating Liabilities
Total liabilities 10,943,000 12,150,100 13,545,000 8,617,000 7,511,000
Less: Current portion of long-term debt, net 699,200 799,200 502,000 602,200 1,500
Less: Long-term debt, net of current portion 5,962,500 7,122,600 9,064,500 4,673,100 4,940,200
Operating liabilities 4,281,300 4,228,300 3,978,500 3,341,700 2,569,300
 
Net operating assets1 21,906,700 19,134,100 19,738,000 14,057,500 12,315,800
Balance-sheet-based aggregate accruals2 2,772,600 (603,900) 5,680,500 1,741,700
Financial Ratio
Balance-sheet-based accruals ratio3 13.51% -3.11% 33.62% 13.21%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Apple Inc. -2.12% 36.09% -11.31%
Arista Networks Inc. 106.22% 24.14% 89.72%
Cisco Systems Inc. 5.96% 20.24% -7.26%
Super Micro Computer Inc. 58.35% 8.42% 20.97% -16.37%
Balance-Sheet-Based Accruals Ratio, Sector
Technology Hardware & Equipment 0.76% 32.81% -10.00% 200.00%
Balance-Sheet-Based Accruals Ratio, Industry
Information Technology 21.68% 21.28% 2.85% 200.00%

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 operating assets = Operating assets – Operating liabilities
= 26,188,0004,281,300 = 21,906,700

2 2022 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2022 – Net operating assets2021
= 21,906,70019,134,100 = 2,772,600

3 2022 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × 2,772,600 ÷ [(21,906,700 + 19,134,100) ÷ 2] = 13.51%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Roper Technologies Inc. deteriorated earnings quality from 2021 to 2022.

Cash-Flow-Statement-Based Accruals Ratio

Roper Technologies Inc., cash flow statement computation of aggregate accruals

US$ in thousands

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net earnings 4,544,700 1,152,600 949,700 1,767,900 944,400
Less: Cash provided by operating activities 606,600 1,866,200 1,525,100 1,461,800 1,430,100
Less: Cash used in investing activities (4,351,800) (253,200) (6,073,900) (1,296,000) (1,335,100)
Cash-flow-statement-based aggregate accruals 8,289,900 (460,400) 5,498,500 1,602,100 849,400
Financial Ratio
Cash-flow-statement-based accruals ratio1 40.40% -2.37% 32.54% 12.15%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Apple Inc. 0.00% 4.86% -20.46%
Arista Networks Inc. 52.90% 147.50% 164.55%
Cisco Systems Inc. -10.18% 1.64% -32.20%
Super Micro Computer Inc. 56.84% 5.08% 19.76% -21.24%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Technology Hardware & Equipment -0.99% 4.79% -22.09% -127.84%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Information Technology 3.93% 10.55% -8.35% -22.20%

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).

1 2022 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × 8,289,900 ÷ [(21,906,700 + 19,134,100) ÷ 2] = 40.40%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Roper Technologies Inc. deteriorated earnings quality from 2021 to 2022.