Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Roper Technologies Inc., solvency 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).
- Debt to Equity
- The debt to equity ratio exhibits a fluctuating trend over the five-year period. It initially decreased from 0.64 in 2018 to 0.56 in 2019, then increased significantly to 0.91 in 2020. Subsequently, it declined to 0.69 in 2021 and further to 0.42 in 2022, indicating an overall reduction in reliance on debt relative to equity by the end of the period.
- Debt to Equity (Including Operating Lease Liability)
- The inclusion of operating lease liabilities follows the same pattern as the basic debt to equity ratio, with slightly higher values each year. The highest value is 0.94 in 2020, followed by a steady decline to 0.43 in 2022, reflecting a similar reduction in leverage when considering lease obligations.
- Debt to Capital
- Debt to capital ratios show a similar pattern, increasing from 0.39 in 2018 to 0.48 in 2020, which indicates a higher proportion of debt in the company's capital structure during that year. This ratio then decreases to 0.41 in 2021 and further to 0.29 in 2022, signaling reduced debt financing relative to total capital over the last two years.
- Debt to Capital (Including Operating Lease Liability)
- This ratio mirrors debt to capital trends with marginally higher values due to the inclusion of operating lease liabilities. The data reveal a peak in 2020 at 0.48, followed by a decline to 0.30 in 2022, consistent with a reduction in total indebtedness including lease commitments.
- Debt to Assets
- The debt to assets ratio increases from 0.32 in 2018 to 0.40 in 2020, illustrating a rise in debt relative to total assets. Subsequently, it declines to 0.33 in 2021 and further to 0.25 in 2022, which suggests an improvement in asset coverage or a reduction in debt levels.
- Debt to Assets (Including Operating Lease Liability)
- When including operating lease liabilities, the trend remains consistent with slightly elevated ratios, peaking at 0.41 in 2020 and then decreasing to 0.25 in 2022. This indicates that liabilities related to leases have a measurable but controlled impact on the overall debt load relative to assets.
- Financial Leverage
- Financial leverage ratios follow the same rising and falling pattern as leverage-related metrics, increasing from 1.97 in 2018 to a peak of 2.29 in 2020. This is followed by a decrease to 1.68 in 2022. The trend reflects periods of increased use of debt or other liabilities to finance assets but an overall downward adjustment over time.
- Interest Coverage
- The interest coverage ratio presents variability over the years. It improved markedly from 7.58 in 2018 to 12.94 in 2019, indicating stronger earnings relative to interest expense. However, it dropped to 6.52 in 2020 and remained fairly stable around 6.4 to 7.7 through 2021 and 2022. This fluctuation may reflect operational challenges or changes in debt servicing costs.
- Fixed Charge Coverage
- Fixed charge coverage ratios echo the interest coverage trend, increasing from 5.92 in 2018 to 9.82 in 2019, followed by a decline to 5.21 in 2020. It remained relatively stable in 2021 and improved slightly to 6.32 in 2022. These changes suggest variations in the company's ability to cover fixed financing obligations from earnings, with weaker coverage during 2020 and partial recovery afterwards.
Debt Ratios
Coverage Ratios
Debt to Equity
Roper Technologies Inc., debt to equity 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) | ||||||
| Current portion of long-term debt, net | 699,200) | 799,200) | 502,000) | 602,200) | 1,500) | |
| Long-term debt, net of current portion | 5,962,500) | 7,122,600) | 9,064,500) | 4,673,100) | 4,940,200) | |
| Total debt | 6,661,700) | 7,921,800) | 9,566,500) | 5,275,300) | 4,941,700) | |
| Stockholders’ equity | 16,037,800) | 11,563,800) | 10,479,800) | 9,491,900) | 7,738,500) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.42 | 0.69 | 0.91 | 0.56 | 0.64 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Apple Inc. | 2.39 | 1.99 | 1.73 | 1.19 | — | |
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| Cisco Systems Inc. | 0.24 | 0.28 | 0.38 | 0.73 | — | |
| Dell Technologies Inc. | — | 19.36 | — | — | — | |
| Super Micro Computer Inc. | 0.42 | 0.09 | 0.03 | 0.03 | — | |
| Debt to Equity, Sector | ||||||
| Technology Hardware & Equipment | 1.66 | 1.65 | 1.69 | — | — | |
| Debt to Equity, Industry | ||||||
| Information Technology | 0.71 | 0.83 | 0.97 | — | — | |
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
Debt to equity = Total debt ÷ Stockholders’ equity
= 6,661,700 ÷ 16,037,800 = 0.42
2 Click competitor name to see calculations.
- Total Debt
- The total debt showed an overall increasing trend from 2018 through 2020, starting at 4,941,700 thousand US dollars in 2018 and nearly doubling to 9,566,500 thousand US dollars in 2020. However, after peaking in 2020, total debt decreased substantially in the following two years, reaching 6,661,700 thousand US dollars by the end of 2022. This indicates a significant effort to reduce leverage after a period of elevated borrowing.
- Stockholders’ Equity
- Stockholders’ equity consistently increased throughout the period under review. From 7,738,500 thousand US dollars in 2018, it rose each year, reaching 16,037,800 thousand US dollars in 2022. This represents more than a doubling of equity over five years, reflecting sustained growth in the company’s net assets or retained earnings.
- Debt to Equity Ratio
- The debt to equity ratio exhibited notable fluctuations. It initially decreased from 0.64 in 2018 to 0.56 in 2019, suggesting a relatively lower reliance on debt compared to equity. The ratio then jumped sharply to 0.91 in 2020, coinciding with the peak in total debt, indicating increased leverage during that year. Subsequently, the ratio declined to 0.69 in 2021 and continued to fall to 0.42 by 2022, reflecting a marked improvement in the balance between debt and equity, and suggestive of a more conservative or strengthened capital structure by the end of the period.
- Overall Analysis
- Over the five-year span, the financial data reveal a strategic shift from higher leverage in 2020 to a stronger equity position by 2022. The reduction in total debt alongside the significant increase in stockholders' equity contributed to a substantial decrease in the debt to equity ratio, pointing to improved financial stability and potentially lower financial risk.
Debt to Equity (including Operating Lease Liability)
Roper Technologies Inc., debt to equity (including operating lease liability) 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) | ||||||
| Current portion of long-term debt, net | 699,200) | 799,200) | 502,000) | 602,200) | 1,500) | |
| Long-term debt, net of current portion | 5,962,500) | 7,122,600) | 9,064,500) | 4,673,100) | 4,940,200) | |
| Total debt | 6,661,700) | 7,921,800) | 9,566,500) | 5,275,300) | 4,941,700) | |
| Current operating lease liabilities | 46,400) | 51,400) | 65,100) | 56,800) | —) | |
| Noncurrent operating lease liabilities (included in Other liabilities) | 164,200) | 180,900) | 219,200) | 220,000) | —) | |
| Total debt (including operating lease liability) | 6,872,300) | 8,154,100) | 9,850,800) | 5,552,100) | 4,941,700) | |
| Stockholders’ equity | 16,037,800) | 11,563,800) | 10,479,800) | 9,491,900) | 7,738,500) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.43 | 0.71 | 0.94 | 0.58 | 0.64 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Apple Inc. | 2.61 | 2.16 | 1.87 | 1.19 | — | |
| Arista Networks Inc. | 0.01 | 0.02 | 0.03 | — | — | |
| Cisco Systems Inc. | 0.27 | 0.31 | 0.41 | 0.73 | — | |
| Dell Technologies Inc. | — | 20.25 | — | — | — | |
| Super Micro Computer Inc. | 0.44 | 0.11 | 0.05 | 0.03 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Technology Hardware & Equipment | 1.81 | 1.78 | 1.81 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.77 | 0.91 | 1.04 | — | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 6,872,300 ÷ 16,037,800 = 0.43
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt increased substantially from 4,941,700 thousand USD in 2018 to a peak of 9,850,800 thousand USD in 2020. Following this peak, total debt declined progressively to 6,872,300 thousand USD by the end of 2022, representing a significant reduction in leverage after 2020.
- Stockholders’ equity
- Stockholders’ equity showed a consistent upward trend throughout the five-year period. Beginning at 7,738,500 thousand USD in 2018, it increased steadily each year, reaching 16,037,800 thousand USD by 2022. This more than doubled the equity base during the period, indicating strong growth in the shareholders' investment and retained earnings.
- Debt to equity ratio (including operating lease liability)
- The debt to equity ratio exhibited notable variation over the period. It started at 0.64 in 2018, decreased slightly to 0.58 in 2019, then surged to 0.94 in 2020, reflecting the significant increase in debt relative to equity that year. Subsequently, the ratio declined to 0.71 in 2021 and further down to 0.43 in 2022, suggesting a strategic reduction of leverage and a stronger equity position by the end of the period.
Debt to Capital
Roper Technologies Inc., debt to capital 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) | ||||||
| Current portion of long-term debt, net | 699,200) | 799,200) | 502,000) | 602,200) | 1,500) | |
| Long-term debt, net of current portion | 5,962,500) | 7,122,600) | 9,064,500) | 4,673,100) | 4,940,200) | |
| Total debt | 6,661,700) | 7,921,800) | 9,566,500) | 5,275,300) | 4,941,700) | |
| Stockholders’ equity | 16,037,800) | 11,563,800) | 10,479,800) | 9,491,900) | 7,738,500) | |
| Total capital | 22,699,500) | 19,485,600) | 20,046,300) | 14,767,200) | 12,680,200) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.29 | 0.41 | 0.48 | 0.36 | 0.39 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Apple Inc. | 0.70 | 0.67 | 0.63 | 0.54 | — | |
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| Cisco Systems Inc. | 0.19 | 0.22 | 0.28 | 0.42 | — | |
| Dell Technologies Inc. | 1.07 | 0.95 | 1.03 | — | — | |
| Super Micro Computer Inc. | 0.30 | 0.08 | 0.03 | 0.02 | — | |
| Debt to Capital, Sector | ||||||
| Technology Hardware & Equipment | 0.62 | 0.62 | 0.63 | — | — | |
| Debt to Capital, Industry | ||||||
| Information Technology | 0.41 | 0.45 | 0.49 | — | — | |
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
Debt to capital = Total debt ÷ Total capital
= 6,661,700 ÷ 22,699,500 = 0.29
2 Click competitor name to see calculations.
- Total Debt
- The total debt amount exhibited a fluctuating trend over the five-year period. It increased modestly from 4,941,700 thousand USD in 2018 to 5,275,300 thousand USD in 2019. A substantial rise occurred in 2020, with total debt reaching 9,566,500 thousand USD. Subsequently, there was a decline to 7,921,800 thousand USD in 2021, followed by a further reduction to 6,661,700 thousand USD in 2022. This pattern indicates a peak in debt in 2020, with notable deleveraging thereafter.
- Total Capital
- Total capital showed a consistent increasing trajectory throughout the period. It rose from 12,680,200 thousand USD in 2018 to 14,767,200 thousand USD in 2019, followed by an accelerated increase to 20,046,300 thousand USD in 2020. Although there was a slight decrease in 2021 to 19,485,600 thousand USD, total capital rebounded strongly in 2022, reaching 22,699,500 thousand USD, the highest level over the five years. This growth in capital suggests expansion or enhanced capitalization efforts overall.
- Debt to Capital Ratio
- The debt-to-capital ratio displayed variability corresponding to changes in debt and capital levels. It decreased from 0.39 in 2018 to 0.36 in 2019, indicating a marginal reduction in financial leverage. In 2020, the ratio surged to 0.48, reflecting a substantial increase in debt relative to capital. The ratio then decreased to 0.41 in 2021 and further declined to 0.29 in 2022, reaching the lowest leverage point in the examined timeframe. This trend suggests that after peaking in 2020, the company improved its capital structure by reducing reliance on debt financing relative to total capital.
Debt to Capital (including Operating Lease Liability)
Roper Technologies Inc., debt to capital (including operating lease liability) 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) | ||||||
| Current portion of long-term debt, net | 699,200) | 799,200) | 502,000) | 602,200) | 1,500) | |
| Long-term debt, net of current portion | 5,962,500) | 7,122,600) | 9,064,500) | 4,673,100) | 4,940,200) | |
| Total debt | 6,661,700) | 7,921,800) | 9,566,500) | 5,275,300) | 4,941,700) | |
| Current operating lease liabilities | 46,400) | 51,400) | 65,100) | 56,800) | —) | |
| Noncurrent operating lease liabilities (included in Other liabilities) | 164,200) | 180,900) | 219,200) | 220,000) | —) | |
| Total debt (including operating lease liability) | 6,872,300) | 8,154,100) | 9,850,800) | 5,552,100) | 4,941,700) | |
| Stockholders’ equity | 16,037,800) | 11,563,800) | 10,479,800) | 9,491,900) | 7,738,500) | |
| Total capital (including operating lease liability) | 22,910,100) | 19,717,900) | 20,330,600) | 15,044,000) | 12,680,200) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.30 | 0.41 | 0.48 | 0.37 | 0.39 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Apple Inc. | 0.72 | 0.68 | 0.65 | 0.54 | — | |
| Arista Networks Inc. | 0.01 | 0.02 | 0.03 | — | — | |
| Cisco Systems Inc. | 0.21 | 0.24 | 0.29 | 0.42 | — | |
| Dell Technologies Inc. | 1.06 | 0.95 | 1.03 | — | — | |
| Super Micro Computer Inc. | 0.30 | 0.10 | 0.05 | 0.02 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Technology Hardware & Equipment | 0.64 | 0.64 | 0.64 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.44 | 0.48 | 0.51 | — | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 6,872,300 ÷ 22,910,100 = 0.30
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt exhibited significant fluctuations over the analyzed period. Initially, there was an increase from approximately 4.94 billion USD at the end of 2018 to about 5.55 billion USD by the end of 2019. This upward trend intensified in 2020, with debt nearly doubling to approximately 9.85 billion USD. However, the following years saw a reversal: debt decreased to around 8.15 billion USD in 2021 and further declined to approximately 6.87 billion USD by the end of 2022.
- Total Capital (including operating lease liability)
- Total capital showed a steady and marked growth throughout the period. Beginning at approximately 12.68 billion USD in 2018, it increased to 15.04 billion USD in 2019 and then experienced a strong rise in 2020 to around 20.33 billion USD. This growth continued with a slight dip in 2021 to roughly 19.72 billion USD, followed by a recovery and new peak at approximately 22.91 billion USD by the end of 2022.
- Debt to Capital Ratio (including operating lease liability)
- The debt-to-capital ratio demonstrated a variable but generally declining trend. Starting at 0.39 in 2018, the ratio decreased slightly to 0.37 in 2019, before peaking at 0.48 in 2020—consistent with the sharp increase in total debt during that year relative to capital. Subsequently, the ratio declined to 0.41 in 2021 and dropped more substantially to 0.30 by 2022, indicating an improved capital structure with lower leverage relative to total capital.
Debt to Assets
Roper Technologies Inc., debt to assets 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) | ||||||
| Current portion of long-term debt, net | 699,200) | 799,200) | 502,000) | 602,200) | 1,500) | |
| Long-term debt, net of current portion | 5,962,500) | 7,122,600) | 9,064,500) | 4,673,100) | 4,940,200) | |
| Total debt | 6,661,700) | 7,921,800) | 9,566,500) | 5,275,300) | 4,941,700) | |
| Total assets | 26,980,800) | 23,713,900) | 24,024,800) | 18,108,900) | 15,249,500) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.25 | 0.33 | 0.40 | 0.29 | 0.32 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Apple Inc. | 0.34 | 0.36 | 0.35 | 0.32 | — | |
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| Cisco Systems Inc. | 0.10 | 0.12 | 0.15 | 0.25 | — | |
| Dell Technologies Inc. | 0.29 | 0.39 | 0.44 | — | — | |
| Super Micro Computer Inc. | 0.19 | 0.04 | 0.02 | 0.01 | — | |
| Debt to Assets, Sector | ||||||
| Technology Hardware & Equipment | 0.29 | 0.32 | 0.33 | — | — | |
| Debt to Assets, Industry | ||||||
| Information Technology | 0.26 | 0.29 | 0.31 | — | — | |
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
Debt to assets = Total debt ÷ Total assets
= 6,661,700 ÷ 26,980,800 = 0.25
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited a fluctuating trend over the five-year period. It increased from approximately 4.94 billion USD in 2018 to a peak of about 9.57 billion USD in 2020. Following this peak, there was a substantial reduction in debt levels, declining to approximately 7.92 billion USD in 2021 and further to around 6.66 billion USD in 2022. This suggests an initial phase of increased leverage, followed by efforts to deleverage or repay debt in the subsequent years.
- Total Assets
- Total assets consistently increased throughout the period. Starting from approximately 15.25 billion USD in 2018, assets grew steadily each year, reaching about 26.98 billion USD in 2022. This steady asset growth indicates ongoing investment or asset accumulation, enhancing the overall scale and resource base of the entity.
- Debt to Assets Ratio
- The debt to assets ratio mirrored the trends observed in debt and assets but showed a notable improvement in leverage position by the end of the timeframe. The ratio initially declined slightly from 0.32 in 2018 to 0.29 in 2019, then increased sharply to 0.40 in 2020, reflecting higher indebtedness relative to total assets. Subsequently, the ratio decreased to 0.33 in 2021 and further to 0.25 in 2022, indicating a stronger balance sheet with less reliance on debt financing relative to asset size.
- Overall Observations
- The financial data indicates that after a period of increasing debt and heightened leverage up to 2020, the entity undertook measures to reduce its debt burden in the following years. Simultaneously, asset growth continued uninterrupted, improving the debt to assets ratio and suggesting enhanced financial stability and a lower risk profile by 2022.
Debt to Assets (including Operating Lease Liability)
Roper Technologies Inc., debt to assets (including operating lease liability) 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) | ||||||
| Current portion of long-term debt, net | 699,200) | 799,200) | 502,000) | 602,200) | 1,500) | |
| Long-term debt, net of current portion | 5,962,500) | 7,122,600) | 9,064,500) | 4,673,100) | 4,940,200) | |
| Total debt | 6,661,700) | 7,921,800) | 9,566,500) | 5,275,300) | 4,941,700) | |
| Current operating lease liabilities | 46,400) | 51,400) | 65,100) | 56,800) | —) | |
| Noncurrent operating lease liabilities (included in Other liabilities) | 164,200) | 180,900) | 219,200) | 220,000) | —) | |
| Total debt (including operating lease liability) | 6,872,300) | 8,154,100) | 9,850,800) | 5,552,100) | 4,941,700) | |
| Total assets | 26,980,800) | 23,713,900) | 24,024,800) | 18,108,900) | 15,249,500) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.25 | 0.34 | 0.41 | 0.31 | 0.32 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Apple Inc. | 0.38 | 0.39 | 0.38 | 0.32 | — | |
| Arista Networks Inc. | 0.01 | 0.01 | 0.02 | — | — | |
| Cisco Systems Inc. | 0.11 | 0.13 | 0.16 | 0.25 | — | |
| Dell Technologies Inc. | 0.30 | 0.41 | 0.45 | — | — | |
| Super Micro Computer Inc. | 0.19 | 0.05 | 0.03 | 0.01 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Technology Hardware & Equipment | 0.31 | 0.34 | 0.35 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.29 | 0.31 | 0.33 | — | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 6,872,300 ÷ 26,980,800 = 0.25
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt displayed a significant increase from 4,941,700 thousand USD in 2018 to a peak of 9,850,800 thousand USD in 2020. Following this peak, total debt decreased to 6,872,300 thousand USD by 2022. This trend suggests an initial phase of increased leverage or financing followed by a deleveraging or repayment period.
- Total Assets
- Total assets grew consistently over the period, starting at 15,249,500 thousand USD in 2018 and rising steadily to 26,980,800 thousand USD in 2022. The increase indicates expansion in the asset base, with a marked acceleration between 2019 and 2020, and continued growth thereafter.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The debt to assets ratio showed variability aligned with the movements in debt and assets. Beginning at 0.32 in 2018, it slightly decreased to 0.31 in 2019, then increased sharply to 0.41 in 2020, reflective of debt growing faster than assets during that year. Subsequently, the ratio declined to 0.25 by 2022, indicating a reduction in leverage relative to asset size and improved balance sheet strength.
Financial Leverage
Roper Technologies Inc., financial leverage 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) | ||||||
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Apple Inc. | 6.96 | 5.56 | 4.96 | 3.74 | — | |
| Arista Networks Inc. | 1.39 | 1.44 | 1.43 | — | — | |
| Cisco Systems Inc. | 2.36 | 2.36 | 2.50 | 2.91 | — | |
| Dell Technologies Inc. | — | 49.78 | — | — | — | |
| Super Micro Computer Inc. | 2.25 | 2.05 | 1.80 | 1.79 | — | |
| Financial Leverage, Sector | ||||||
| Technology Hardware & Equipment | 5.78 | 5.18 | 5.13 | — | — | |
| Financial Leverage, Industry | ||||||
| Information Technology | 2.69 | 2.90 | 3.12 | — | — | |
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
Financial leverage = Total assets ÷ Stockholders’ equity
= 26,980,800 ÷ 16,037,800 = 1.68
2 Click competitor name to see calculations.
- Total Assets
- Total assets demonstrated a consistent upward trend over the five-year period. Starting at approximately $15.25 billion at the end of 2018, total assets increased steadily to reach nearly $27.0 billion by the end of 2022. The most substantial growth occurred between the years 2019 and 2020, where total assets rose from approximately $18.1 billion to $24.0 billion, followed by a slight decline in 2021 before increasing again in 2022.
- Stockholders’ Equity
- Stockholders’ equity showed continuous growth during the period under review. Beginning at nearly $7.74 billion in 2018, equity rose each year, culminating in a significant increase to about $16.0 billion by the end of 2022. This indicates a strengthening capital base, with the largest year-over-year increase occurring in 2022.
- Financial Leverage Ratio
- The financial leverage ratio fluctuated over the years, indicating changes in the company’s reliance on debt relative to equity. Starting at 1.97 in 2018, the ratio slightly decreased to 1.91 in 2019, then increased markedly to 2.29 in 2020. This was followed by a decrease to 2.05 in 2021 and a further decline to 1.68 in 2022. The overall trend from 2018 to 2022 suggests a reduction in financial leverage, implying a lower degree of indebtedness relative to equity by the end of 2022.
Interest Coverage
Roper Technologies Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net earnings | 4,544,700) | 1,152,600) | 949,700) | 1,767,900) | 944,400) | |
| Less: Net earnings from discontinued operations | 3,559,100) | 170,000) | —) | —) | —) | |
| Add: Income tax expense | 296,400) | 288,400) | 259,600) | 459,500) | 254,000) | |
| Add: Interest expense, net | 192,400) | 234,100) | 218,900) | 186,600) | 182,100) | |
| Earnings before interest and tax (EBIT) | 1,474,400) | 1,505,100) | 1,428,200) | 2,414,000) | 1,380,500) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 7.66 | 6.43 | 6.52 | 12.94 | 7.58 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Apple Inc. | 41.64 | 42.29 | 24.35 | 19.38 | — | |
| Arista Networks Inc. | — | — | — | — | — | |
| Cisco Systems Inc. | 41.21 | 31.56 | 24.88 | 17.96 | — | |
| Dell Technologies Inc. | 4.84 | 2.54 | 1.00 | — | — | |
| Super Micro Computer Inc. | 53.71 | 48.81 | 40.01 | 13.97 | — | |
| Interest Coverage, Sector | ||||||
| Technology Hardware & Equipment | 30.22 | 24.25 | 14.35 | — | — | |
| Interest Coverage, Industry | ||||||
| Information Technology | 22.65 | 19.92 | 14.14 | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 1,474,400 ÷ 192,400 = 7.66
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT exhibited considerable fluctuations over the reviewed periods. There was a notable increase from 1,380,500 thousand US dollars in 2018 to a peak of 2,414,000 thousand US dollars in 2019, more than a 74% growth. However, in 2020 the EBIT declined sharply to 1,428,200 thousand US dollars, representing a decrease of approximately 41% from 2019. The subsequent years showed slight recovery and stabilization, with EBIT reaching 1,505,100 thousand in 2021 and slightly decreasing to 1,474,400 thousand in 2022. Overall, the trend indicates volatility, with a peak in 2019 followed by a substantial drop and relative stabilization thereafter.
- Interest expense, net
- The net interest expense displayed a gradual upward trend from 182,100 thousand US dollars in 2018 to 234,100 thousand in 2021, indicating increased borrowing costs or higher debt levels over the period. However, in 2022, there was a decrease to 192,400 thousand US dollars which may suggest a reduction in debt, improved interest rates, or other financial adjustments. The general movement shows rising interest expenses until 2021, followed by a decline in the latest year.
- Interest coverage ratio
- The interest coverage ratio experienced significant variability. It increased from 7.58 in 2018 to a high of 12.94 in 2019, reflecting a strong ability to meet interest obligations due to the peak EBIT that year. In 2020, this ratio dropped sharply to 6.52, aligning with the decline in EBIT and increased interest expenses, indicating reduced capacity to cover interest charges. The ratio remained relatively stable but low at 6.43 in 2021 before improving to 7.66 in 2022. This pattern suggests fluctuating financial leverage and risk, with the peak in 2019 and weaker coverage in subsequent years, though there is evidence of a gradual recovery toward the end of the period.
Fixed Charge Coverage
Roper Technologies Inc., fixed charge coverage 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 earnings | 4,544,700) | 1,152,600) | 949,700) | 1,767,900) | 944,400) | |
| Less: Net earnings from discontinued operations | 3,559,100) | 170,000) | —) | —) | —) | |
| Add: Income tax expense | 296,400) | 288,400) | 259,600) | 459,500) | 254,000) | |
| Add: Interest expense, net | 192,400) | 234,100) | 218,900) | 186,600) | 182,100) | |
| Earnings before interest and tax (EBIT) | 1,474,400) | 1,505,100) | 1,428,200) | 2,414,000) | 1,380,500) | |
| Add: Operating lease expense | 48,700) | 64,600) | 68,500) | 65,900) | 61,700) | |
| Earnings before fixed charges and tax | 1,523,100) | 1,569,700) | 1,496,700) | 2,479,900) | 1,442,200) | |
| Interest expense, net | 192,400) | 234,100) | 218,900) | 186,600) | 182,100) | |
| Operating lease expense | 48,700) | 64,600) | 68,500) | 65,900) | 61,700) | |
| Fixed charges | 241,100) | 298,700) | 287,400) | 252,500) | 243,800) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 6.32 | 5.26 | 5.21 | 9.82 | 5.92 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Apple Inc. | 25.65 | 26.13 | 16.34 | 14.48 | — | |
| Arista Networks Inc. | 49.20 | 31.02 | 24.95 | — | — | |
| Cisco Systems Inc. | 20.30 | 16.92 | 14.79 | 12.28 | — | |
| Dell Technologies Inc. | 4.16 | 2.26 | 1.00 | — | — | |
| Super Micro Computer Inc. | 24.03 | 12.52 | 10.45 | 7.48 | — | |
| Fixed Charge Coverage, Sector | ||||||
| Technology Hardware & Equipment | 19.84 | 16.62 | 10.51 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Information Technology | 13.44 | 12.21 | 9.04 | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,523,100 ÷ 241,100 = 6.32
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax exhibited significant fluctuation over the analyzed period. Starting at 1,442,200 thousand US dollars at the end of 2018, the figure peaked markedly in 2019 at 2,479,900 thousand US dollars, reflecting a substantial increase. Subsequently, a sharp decline occurred in 2020, with earnings falling to 1,496,700 thousand US dollars. The earnings then showed moderate recovery in 2021, reaching 1,569,700 thousand US dollars, but decreased slightly to 1,523,100 thousand US dollars by the end of 2022.
- Fixed charges
- Fixed charges showed a relatively stable but slightly rising trend from 2018 through 2021. The amount increased from 243,800 thousand US dollars in 2018 to a peak of 298,700 thousand US dollars in 2021. In 2022, fixed charges decreased notably to 241,100 thousand US dollars, falling below the levels observed at the start of the period.
- Fixed charge coverage ratio
- The fixed charge coverage ratio demonstrated considerable variability throughout the period. It started at 5.92 in 2018, rose sharply to 9.82 in 2019, indicating stronger coverage of fixed charges by earnings. However, the ratio dropped significantly to 5.21 in 2020 and remained relatively flat at 5.26 in 2021. In 2022, the ratio improved to 6.32, suggesting an enhanced capacity to cover fixed charges compared to the previous two years, albeit below the 2019 peak.
- Overall insights
- The data depicts a year of exceptional performance in 2019 with peak earnings and fixed charge coverage, possibly due to extraordinary operational conditions. The subsequent years reveal a correction phase with reduced earnings and coverage ratios returning closer to historical levels. The reduction in fixed charges in 2022 may have contributed to the improved fixed charge coverage ratio despite earnings not fully recovering to prior highs. These trends suggest volatility in earnings capacity relative to fixed obligations, warranting further investigation into underlying business drivers and cost management strategies.