Analysis of Solvency Ratios
Quarterly Data
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 (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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
The analysis of the financial leverage ratios over multiple quarters reveals several important trends:
- Debt to Equity Ratio
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This ratio experienced fluctuations throughout the period. Initially, it hovered around 0.65 to 0.77 between March 2018 and June 2018, followed by a decline to 0.55 by March 2019. A notable spike occurred toward the end of 2020, reaching a peak near 0.96 in September 2020, before steadily decreasing in subsequent quarters. By September 2023, the ratio had stabilized around 0.40, indicating a reduction in reliance on debt relative to equity in recent quarters.
- Debt to Capital Ratio
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Over the examined quarters, this ratio showed a general decline. Starting near 0.39 to 0.44 in early 2018, it similarly spiked approaching 0.49 in late 2020. Afterward, it declined gradually to about 0.29 toward the third quarter of 2023. This trend suggests a decreased proportion of debt in the company’s capital structure over time.
- Debt to Assets Ratio
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The debt to assets ratio followed a pattern akin to the debt to capital ratio, with initial values between 0.32 and 0.37 early in the timeframe. It peaked near 0.41 in late 2020 then steadily decreased to 0.24 by the latest quarter available. This indicates a decreasing portion of total assets financed through debt as the periods progress.
- Financial Leverage Ratio
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This ratio remained generally stable around the range of 1.9 to 2.1 in the earlier years, with a pronounced increase peaking at approximately 2.33 around September 2020. Subsequently, there was a steady decline to roughly 1.65 by September 2023, reflecting a gradual reduction in overall leverage.
- Interest Coverage Ratio
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Interest coverage demonstrates the company’s ability to meet interest obligations from operating earnings. Starting from a reading of approximately 7.58 in the fourth quarter of 2018, it rose sharply to a peak of about 12.94 by the end of 2019. The ratio then moderated, fluctuating between 6.2 and 7.3 through 2021 and 2022. From early 2023, a clear upward trend is visible, culminating in a value above 10 by September 2023. This improvement suggests increasingly strong earnings relative to interest expenses over recent quarters.
Overall, the data indicates that the company has effectively reduced its financial risk by decreasing its debt ratios since the peak levels observed in 2020. The strengthening interest coverage ratio complements this observation, reflecting better capacity to service debt. The decline in financial leverage ratios further supports a trend towards a more conservative capital structure. These patterns collectively imply enhanced financial stability and lower dependency on debt financing in the most recent periods.
Debt Ratios
Coverage Ratios
Debt to Equity
Roper Technologies Inc., debt to equity 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Other short-term debt | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 14,100) | —) | —) | —) | —) | |||||||
| Current portion of long-term debt, net | 499,300) | 699,800) | 699,500) | 699,200) | 698,900) | 799,900) | 799,500) | 799,200) | 799,200) | 502,400) | 502,100) | 502,000) | 602,800) | 602,600) | 602,400) | 602,200) | 2,900) | 2,100) | 1,700) | 1,500) | 801,600) | 801,700) | 801,300) | |||||||
| Long-term debt, net of current portion | 6,379,000) | 5,966,300) | 5,964,400) | 5,962,500) | 5,960,600) | 6,657,100) | 6,654,800) | 7,122,600) | 7,529,900) | 8,199,500) | 8,571,800) | 9,064,500) | 9,101,200) | 5,263,800) | 4,674,200) | 4,673,100) | 6,195,100) | 4,718,900) | 4,487,000) | 4,940,200) | 4,414,300) | 4,821,700) | 3,820,700) | |||||||
| Total debt | 6,878,300) | 6,666,100) | 6,663,900) | 6,661,700) | 6,659,500) | 7,457,000) | 7,454,300) | 7,921,800) | 8,329,100) | 8,701,900) | 9,073,900) | 9,566,500) | 9,704,000) | 5,866,400) | 5,276,600) | 5,275,300) | 6,198,000) | 4,721,000) | 4,502,800) | 4,941,700) | 5,215,900) | 5,623,400) | 4,622,000) | |||||||
| Stockholders’ equity | 17,038,700) | 16,745,900) | 16,332,700) | 16,037,800) | 13,857,800) | 13,726,500) | 13,551,900) | 11,563,800) | 11,342,300) | 11,089,200) | 10,765,700) | 10,479,800) | 10,160,900) | 9,879,700) | 9,591,300) | 9,491,900) | 8,571,300) | 8,351,000) | 8,137,400) | 7,738,500) | 7,554,900) | 7,302,900) | 7,155,500) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to equity1 | 0.40 | 0.40 | 0.41 | 0.42 | 0.48 | 0.54 | 0.55 | 0.69 | 0.73 | 0.78 | 0.84 | 0.91 | 0.96 | 0.59 | 0.55 | 0.56 | 0.72 | 0.57 | 0.55 | 0.64 | 0.69 | 0.77 | 0.65 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||||
| Apple Inc. | 1.81 | 1.76 | 1.96 | 2.37 | 2.06 | 1.78 | 1.71 | 1.98 | 1.89 | 1.76 | 1.69 | 1.72 | 1.56 | 1.40 | 1.21 | 1.19 | 1.12 | 1.06 | 0.97 | — | — | — | — | |||||||
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | |||||||
| Cisco Systems Inc. | 0.20 | 0.21 | 0.22 | 0.24 | 0.23 | 0.29 | 0.22 | 0.28 | 0.29 | 0.37 | 0.38 | 0.38 | 0.45 | 0.45 | 0.54 | 0.73 | 0.64 | 0.63 | 0.58 | — | — | — | — | |||||||
| Dell Technologies Inc. | — | — | — | — | 5.36 | 9.04 | 13.39 | 19.36 | 56.47 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Super Micro Computer Inc. | 0.11 | 0.09 | 0.15 | 0.42 | 0.43 | 0.27 | 0.25 | 0.09 | 0.08 | 0.04 | 0.03 | 0.03 | 0.03 | 0.02 | 0.02 | 0.03 | 0.02 | 0.05 | 0.09 | — | — | — | — | |||||||
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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 6,878,300 ÷ 17,038,700 = 0.40
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the capital structure metrics over the indicated periods.
- Total Debt
- A fluctuating pattern is observed in the total debt levels. Initially, the debt rose from approximately 4.62 billion USD at the end of March 2018 to a peak of around 6.20 billion USD in September 2019. This was followed by a general decline until early 2022, where it decreased to approximately 6.66 billion USD by March 2023. However, total debt increased slightly towards the later periods, ending near 6.88 billion USD by September 2023. Notable spikes occurred around mid-2020, reaching above 9.7 billion USD, suggesting temporary increases possibly related to external financing needs.
- Stockholders’ Equity
- There is a consistent upward trajectory in stockholders' equity throughout the periods reviewed. From approximately 7.16 billion USD in March 2018, equity steadily grew to about 17.04 billion USD by September 2023. The growth appears relatively stable without significant drops, indicating a strengthening equity base. Growth accelerated particularly in the years 2021 through 2023, reflecting potentially retained earnings accumulation or increased capital injections.
- Debt to Equity Ratio
- The debt to equity ratio exhibits a general declining trend over the entire period. Starting at 0.65 in March 2018, it peaks at 0.96 in September 2020 coinciding with the surge in debt at that time. Following this peak, the ratio declines steadily to about 0.40 by September 2023, reflecting improved leverage and a more conservative capital structure. The decline in the ratio is driven both by the stabilization and slight reduction in total debt as well as by the strong growth in equity.
Overall, the data suggest a progressive strengthening of the company’s financial position through increasing equity and better leverage management, with certain periods reflecting strategic borrowing or external influences causing temporary increases in debt levels.
Debt to Capital
Roper Technologies Inc., debt to capital 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Other short-term debt | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 14,100) | —) | —) | —) | —) | |||||||
| Current portion of long-term debt, net | 499,300) | 699,800) | 699,500) | 699,200) | 698,900) | 799,900) | 799,500) | 799,200) | 799,200) | 502,400) | 502,100) | 502,000) | 602,800) | 602,600) | 602,400) | 602,200) | 2,900) | 2,100) | 1,700) | 1,500) | 801,600) | 801,700) | 801,300) | |||||||
| Long-term debt, net of current portion | 6,379,000) | 5,966,300) | 5,964,400) | 5,962,500) | 5,960,600) | 6,657,100) | 6,654,800) | 7,122,600) | 7,529,900) | 8,199,500) | 8,571,800) | 9,064,500) | 9,101,200) | 5,263,800) | 4,674,200) | 4,673,100) | 6,195,100) | 4,718,900) | 4,487,000) | 4,940,200) | 4,414,300) | 4,821,700) | 3,820,700) | |||||||
| Total debt | 6,878,300) | 6,666,100) | 6,663,900) | 6,661,700) | 6,659,500) | 7,457,000) | 7,454,300) | 7,921,800) | 8,329,100) | 8,701,900) | 9,073,900) | 9,566,500) | 9,704,000) | 5,866,400) | 5,276,600) | 5,275,300) | 6,198,000) | 4,721,000) | 4,502,800) | 4,941,700) | 5,215,900) | 5,623,400) | 4,622,000) | |||||||
| Stockholders’ equity | 17,038,700) | 16,745,900) | 16,332,700) | 16,037,800) | 13,857,800) | 13,726,500) | 13,551,900) | 11,563,800) | 11,342,300) | 11,089,200) | 10,765,700) | 10,479,800) | 10,160,900) | 9,879,700) | 9,591,300) | 9,491,900) | 8,571,300) | 8,351,000) | 8,137,400) | 7,738,500) | 7,554,900) | 7,302,900) | 7,155,500) | |||||||
| Total capital | 23,917,000) | 23,412,000) | 22,996,600) | 22,699,500) | 20,517,300) | 21,183,500) | 21,006,200) | 19,485,600) | 19,671,400) | 19,791,100) | 19,839,600) | 20,046,300) | 19,864,900) | 15,746,100) | 14,867,900) | 14,767,200) | 14,769,300) | 13,072,000) | 12,640,200) | 12,680,200) | 12,770,800) | 12,926,300) | 11,777,500) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to capital1 | 0.29 | 0.28 | 0.29 | 0.29 | 0.32 | 0.35 | 0.35 | 0.41 | 0.42 | 0.44 | 0.46 | 0.48 | 0.49 | 0.37 | 0.35 | 0.36 | 0.42 | 0.36 | 0.36 | 0.39 | 0.41 | 0.44 | 0.39 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||||
| Apple Inc. | 0.64 | 0.64 | 0.66 | 0.70 | 0.67 | 0.64 | 0.63 | 0.66 | 0.65 | 0.64 | 0.63 | 0.63 | 0.61 | 0.58 | 0.55 | 0.54 | 0.53 | 0.52 | 0.49 | — | — | — | — | |||||||
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | |||||||
| Cisco Systems Inc. | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.23 | 0.18 | 0.22 | 0.22 | 0.27 | 0.28 | 0.28 | 0.31 | 0.31 | 0.35 | 0.42 | 0.39 | 0.39 | 0.37 | — | — | — | — | |||||||
| Dell Technologies Inc. | 1.15 | 1.12 | 1.10 | 1.07 | 0.84 | 0.90 | 0.93 | 0.95 | 0.98 | 1.01 | 1.03 | 1.03 | 1.04 | 1.05 | 1.14 | — | — | — | — | — | — | — | — | |||||||
| Super Micro Computer Inc. | 0.10 | 0.09 | 0.13 | 0.30 | 0.30 | 0.21 | 0.20 | 0.08 | 0.07 | 0.04 | 0.03 | 0.03 | 0.03 | 0.02 | 0.02 | 0.02 | 0.02 | 0.05 | 0.08 | — | — | — | — | |||||||
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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 6,878,300 ÷ 23,917,000 = 0.29
2 Click competitor name to see calculations.
The financial data reveals several significant trends in the company's capital structure over the analyzed periods. Total debt exhibits notable fluctuations. Beginning in early 2018 at approximately $4.62 billion, it increased to about $5.62 billion by mid-2018, followed by a decline towards the end of 2018 and early 2019. A sharp increase occurs in late 2019 and especially through 2020, reaching a peak near $9.7 billion in the third quarter of 2020. Subsequently, total debt steadily decreases through 2021 and 2022, reaching a low near $6.65 billion by late 2022, before displaying a slight upward movement again in 2023, moving towards $6.88 billion by the third quarter.
Total capital shows a generally upward trend throughout the entire period. Starting at roughly $11.78 billion in early 2018, it rises steadily with a few minor dips, notably maintaining levels around $12.6 to $13.1 billion during 2019. From 2020 onward, total capital surges more prominently, reaching approximately $20 billion by the end of 2020 and continuing increasing through 2021 and 2022. This growth culminates in total capital exceeding $23.9 billion by the third quarter of 2023. This indicates an overall expansion of the company's financial resources and capital base over these years.
The ratio of debt to capital provides insight into the company's leverage strategy. Initially, this ratio starts at 0.39 in early 2018, rises to as high as 0.44 by mid-2018, and fluctuates around 0.39 to 0.42 through 2019. A noticeable increase to nearly 0.49 occurs in the third quarter of 2020, coinciding with the peak in total debt during the same period. After this point, the ratio declines steadily, reflecting a deliberate reduction in leverage relative to the capital base. By the end of 2022, the debt to capital ratio reaches its lowest level in the dataset at around 0.29, maintaining this lower leverage into 2023 with minor variations.
In summary, the company experienced a period of increased borrowing during 2019-2020, likely to support growth or other strategic initiatives, leading to the highest recorded debt and leverage ratios in the examined timeline. Post-2020, there is a clear pattern of deleveraging with consistent reduction in total debt and a concomitant increase in total capital, resulting in a more conservative capital structure toward 2022 and 2023. The declining debt to capital ratio suggests improved financial stability and potentially a stronger credit profile going forward.
Debt to Assets
Roper Technologies Inc., debt to assets calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Other short-term debt | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 14,100) | —) | —) | —) | —) | |||||||
| Current portion of long-term debt, net | 499,300) | 699,800) | 699,500) | 699,200) | 698,900) | 799,900) | 799,500) | 799,200) | 799,200) | 502,400) | 502,100) | 502,000) | 602,800) | 602,600) | 602,400) | 602,200) | 2,900) | 2,100) | 1,700) | 1,500) | 801,600) | 801,700) | 801,300) | |||||||
| Long-term debt, net of current portion | 6,379,000) | 5,966,300) | 5,964,400) | 5,962,500) | 5,960,600) | 6,657,100) | 6,654,800) | 7,122,600) | 7,529,900) | 8,199,500) | 8,571,800) | 9,064,500) | 9,101,200) | 5,263,800) | 4,674,200) | 4,673,100) | 6,195,100) | 4,718,900) | 4,487,000) | 4,940,200) | 4,414,300) | 4,821,700) | 3,820,700) | |||||||
| Total debt | 6,878,300) | 6,666,100) | 6,663,900) | 6,661,700) | 6,659,500) | 7,457,000) | 7,454,300) | 7,921,800) | 8,329,100) | 8,701,900) | 9,073,900) | 9,566,500) | 9,704,000) | 5,866,400) | 5,276,600) | 5,275,300) | 6,198,000) | 4,721,000) | 4,502,800) | 4,941,700) | 5,215,900) | 5,623,400) | 4,622,000) | |||||||
| Total assets | 28,188,000) | 27,460,400) | 27,134,800) | 26,980,800) | 24,397,200) | 25,350,300) | 25,635,800) | 23,713,900) | 23,728,100) | 23,833,700) | 23,871,100) | 24,024,800) | 23,652,000) | 19,142,300) | 18,137,800) | 18,108,900) | 17,819,100) | 15,908,300) | 15,414,100) | 15,249,500) | 15,245,100) | 15,361,000) | 14,074,100) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to assets1 | 0.24 | 0.24 | 0.25 | 0.25 | 0.27 | 0.29 | 0.29 | 0.33 | 0.35 | 0.37 | 0.38 | 0.40 | 0.41 | 0.31 | 0.29 | 0.29 | 0.35 | 0.30 | 0.29 | 0.32 | 0.34 | 0.37 | 0.33 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||||
| Apple Inc. | 0.33 | 0.33 | 0.32 | 0.34 | 0.36 | 0.34 | 0.32 | 0.36 | 0.37 | 0.36 | 0.32 | 0.35 | 0.36 | 0.34 | 0.32 | 0.32 | 0.34 | 0.33 | 0.31 | — | — | — | — | |||||||
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | |||||||
| Cisco Systems Inc. | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.12 | 0.10 | 0.12 | 0.12 | 0.15 | 0.15 | 0.15 | 0.18 | 0.18 | 0.20 | 0.25 | 0.24 | 0.25 | 0.24 | — | — | — | — | |||||||
| Dell Technologies Inc. | 0.32 | 0.30 | 0.31 | 0.29 | 0.35 | 0.36 | 0.38 | 0.39 | 0.42 | 0.44 | 0.47 | 0.44 | 0.45 | 0.45 | 0.49 | — | — | — | — | — | — | — | — | |||||||
| Super Micro Computer Inc. | 0.06 | 0.06 | 0.08 | 0.19 | 0.18 | 0.12 | 0.11 | 0.04 | 0.04 | 0.02 | 0.02 | 0.02 | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | 0.03 | 0.05 | — | — | — | — | |||||||
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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 6,878,300 ÷ 28,188,000 = 0.24
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in the company’s debt structure and asset base over the observed periods.
- Total Debt
- Total debt exhibited overall fluctuations with notable peaks. Initially, it increased from 4,622,000 thousand USD in Q1 2018 to a high of 6,198,000 thousand USD in Q3 2019. Thereafter, it remained volatile, surging sharply to 9,704,000 thousand USD in Q3 2020, indicative of a substantial borrowing event or acquisition. Post this spike, total debt showed a gradual declining trend, reducing to approximately 6,878,300 thousand USD by Q3 2023, though it did not return to the lower pre-2020 levels.
- Total Assets
- Total assets demonstrated a consistent growth trend throughout the period. Starting at 14,074,100 thousand USD in Q1 2018, total assets steadily increased, with occasional accelerations such as between Q2 2020 (19,142,300 thousand USD) and Q3 2020 (23,652,000 thousand USD). By Q3 2023, total assets reached 28,188,000 thousand USD, marking a near doubling since 2018. This growth reflects asset acquisitions, investments, or value appreciation over time.
- Debt to Assets Ratio
- The debt to assets ratio fluctuated in line with movements in debt and asset levels. Initially, the ratio increased from 0.33 in Q1 2018 to 0.37 in Q2 2018, before gradually declining to 0.29 by Q1 2019. Post that, it rose again to a peak of 0.41 in Q3 2020, coinciding with the spike in debt. Subsequently, the ratio steadily decreased, reaching 0.24 by Q3 2023. The declining ratio indicates an improving financial leverage position, driven mainly by strong asset growth outpacing debt reduction.
In summary, the company increased its borrowing substantially around mid-2020, possibly related to strategic financing or acquisitions, while simultaneously growing its asset base significantly. Following the peak debt levels, the company appears to have actively reduced its leverage, as shown by the declining debt to assets ratio in recent quarters. The overall pattern suggests a phase of expansion financed with debt, followed by a consolidation period focused on deleveraging and asset growth stabilization.
Financial Leverage
Roper Technologies Inc., financial leverage 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Total assets | 28,188,000) | 27,460,400) | 27,134,800) | 26,980,800) | 24,397,200) | 25,350,300) | 25,635,800) | 23,713,900) | 23,728,100) | 23,833,700) | 23,871,100) | 24,024,800) | 23,652,000) | 19,142,300) | 18,137,800) | 18,108,900) | 17,819,100) | 15,908,300) | 15,414,100) | 15,249,500) | 15,245,100) | 15,361,000) | 14,074,100) | |||||||
| Stockholders’ equity | 17,038,700) | 16,745,900) | 16,332,700) | 16,037,800) | 13,857,800) | 13,726,500) | 13,551,900) | 11,563,800) | 11,342,300) | 11,089,200) | 10,765,700) | 10,479,800) | 10,160,900) | 9,879,700) | 9,591,300) | 9,491,900) | 8,571,300) | 8,351,000) | 8,137,400) | 7,738,500) | 7,554,900) | 7,302,900) | 7,155,500) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Financial leverage1 | 1.65 | 1.64 | 1.66 | 1.68 | 1.76 | 1.85 | 1.89 | 2.05 | 2.09 | 2.15 | 2.22 | 2.29 | 2.33 | 1.94 | 1.89 | 1.91 | 2.08 | 1.90 | 1.89 | 1.97 | 2.02 | 2.10 | 1.97 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||||
| Apple Inc. | 5.56 | 5.34 | 6.11 | 6.96 | 5.79 | 5.20 | 5.30 | 5.56 | 5.13 | 4.87 | 5.35 | 4.96 | 4.39 | 4.09 | 3.80 | 3.74 | 3.34 | 3.23 | 3.17 | — | — | — | — | |||||||
| Arista Networks Inc. | 1.39 | 1.40 | 1.42 | 1.39 | 1.41 | 1.45 | 1.47 | 1.44 | 1.41 | 1.41 | 1.42 | 1.43 | 1.43 | 1.43 | 1.44 | — | — | — | — | — | — | — | — | |||||||
| Cisco Systems Inc. | 2.31 | 2.31 | 2.31 | 2.36 | 2.30 | 2.39 | 2.25 | 2.36 | 2.34 | 2.44 | 2.49 | 2.50 | 2.56 | 2.54 | 2.69 | 2.91 | 2.64 | 2.51 | 2.40 | — | — | — | — | |||||||
| Dell Technologies Inc. | — | — | — | — | 15.15 | 25.43 | 34.92 | 49.78 | 134.71 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Super Micro Computer Inc. | 1.81 | 1.69 | 2.03 | 2.25 | 2.41 | 2.26 | 2.14 | 2.05 | 1.90 | 1.78 | 1.69 | 1.80 | 1.89 | 1.80 | 1.75 | 1.79 | 1.76 | 1.93 | 1.99 | — | — | — | — | |||||||
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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 28,188,000 ÷ 17,038,700 = 1.65
2 Click competitor name to see calculations.
The analysis of the quarterly financial data shows distinct trends in the total assets, stockholders' equity, and financial leverage ratios over the observed periods.
- Total Assets
-
Total assets exhibit a general upward trajectory from March 31, 2018, through September 30, 2023. Starting at approximately $14.07 billion, assets increased steadily, reaching nearly $28.19 billion by the last recorded quarter. Notable accelerations in asset growth are observed around mid-2020, where assets rose from $19.14 billion to $24.02 billion by year-end 2020, indicating substantial asset accumulation during this period. Subsequently, the asset base maintained an increasing trend, although with some fluctuations such as a dip from $25.35 billion in June 2022 to $24.40 billion in September 2022 before climbing again in the following quarters.
- Stockholders’ Equity
-
Stockholders' equity also shows consistent growth throughout the quarters. Beginning at approximately $7.16 billion in early 2018, it approximately doubled by the end of the reporting period, reaching $17.04 billion by September 30, 2023. The increase in equity is relatively steady, with incrementally larger gains observed between 2021 and 2023. A significant rise is noticeable from March 31, 2022, onwards, where equity increased sharply from $13.55 billion to $16.03 billion by March 31, 2023, indicating strong capital accumulation or retained earnings during this time frame.
- Financial Leverage Ratio
-
The financial leverage ratio reveals a declining trend across the periods analyzed. Initially ranging around 1.97 to 2.10 in early 2018, the ratio experienced fluctuations, peaking briefly at 2.33 in September 2020. After this peak, the ratio steadily decreased, indicating a reduction in leverage to approximately 1.65 by September 2023. This downward trend suggests an improving balance sheet structure, with either reduced reliance on debt or increased equity cushioning relative to total assets over time. The improved leverage ratio is consistent with the rapid growth in equity alongside the expansion of total assets.
Overall, the data point towards a strengthening financial position characterized by expanding asset base and equity, alongside a prudent reduction in financial leverage. These trends suggest improved solvency and potentially lower financial risk over the observed intervals.
Interest Coverage
Roper Technologies Inc., interest coverage calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net earnings | 347,200) | 364,900) | 283,100) | 1,928,400) | 327,000) | 268,800) | 2,020,500) | 287,800) | 289,500) | 286,300) | 289,000) | 255,800) | 234,400) | 219,200) | 240,300) | 871,100) | 277,500) | 249,700) | 369,600) | 257,100) | 247,600) | 228,400) | 211,300) | |||||||
| Less: Net earnings (loss) from discontinued operations | 1,600) | 3,900) | (1,200) | 1,681,100) | 50,100) | 43,800) | 1,784,100) | 87,900) | 29,700) | 33,300) | 19,100) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Add: Income tax expense | 97,000) | 102,700) | 75,800) | 61,100) | 78,600) | 91,900) | 64,800) | 60,300) | 83,800) | 73,100) | 71,200) | 61,700) | 68,700) | 64,900) | 64,300) | 276,900) | 60,400) | 72,600) | 49,600) | 61,000) | 64,000) | 85,000) | 44,000) | |||||||
| Add: Interest expense, net | 42,400) | 34,800) | 37,400) | 53,800) | 41,300) | 44,700) | 52,600) | 55,800) | 58,200) | 59,500) | 60,600) | 63,700) | 62,300) | 47,500) | 45,400) | 49,000) | 48,800) | 45,100) | 43,700) | 47,300) | 48,400) | 43,200) | 43,200) | |||||||
| Earnings before interest and tax (EBIT) | 485,000) | 498,500) | 397,500) | 362,200) | 396,800) | 361,600) | 353,800) | 316,000) | 401,800) | 385,600) | 401,700) | 381,200) | 365,400) | 331,600) | 350,000) | 1,197,000) | 386,700) | 367,400) | 462,900) | 365,400) | 360,000) | 356,600) | 298,500) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Interest coverage1 | 10.35 | 9.89 | 8.57 | 7.66 | 7.35 | 6.78 | 6.44 | 6.43 | 6.49 | 6.23 | 6.32 | 6.52 | 10.99 | 11.88 | 12.22 | 12.94 | 8.56 | 8.43 | 8.46 | 7.58 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||||
| Cisco Systems Inc. | 35.87 | 37.17 | 39.53 | 41.21 | 41.54 | 38.79 | 35.64 | 31.56 | 29.20 | 27.76 | 25.98 | 24.88 | 22.44 | 20.36 | 18.58 | 17.96 | — | — | — | — | — | — | — | |||||||
| Super Micro Computer Inc. | 70.87 | 68.85 | 56.79 | 53.71 | 51.73 | 42.94 | 45.86 | 48.81 | 38.80 | 38.83 | 36.02 | 40.01 | 37.51 | 28.81 | 20.91 | 13.97 | — | — | — | — | — | — | — | |||||||
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), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Interest coverage
= (EBITQ3 2023
+ EBITQ2 2023
+ EBITQ1 2023
+ EBITQ4 2022)
÷ (Interest expenseQ3 2023
+ Interest expenseQ2 2023
+ Interest expenseQ1 2023
+ Interest expenseQ4 2022)
= (485,000 + 498,500 + 397,500 + 362,200)
÷ (42,400 + 34,800 + 37,400 + 53,800)
= 10.35
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT values demonstrate a generally upward trend over the analyzed periods, with fluctuations across quarters. Starting from approximately $298.5 million in March 2018, EBIT increased steadily through 2019, reaching a peak of about $1.197 billion by December 2019. This growth suggests strong operational performance during this time frame. However, in 2020, the EBIT values show some variability without a clear upward pattern, ranging around the mid-$300 million to high $300 million mark per quarter. In 2021, the figures hover mostly between $316 million and $402 million, indicating relative stability but without the previous strong growth. For 2022 and into the first three quarters of 2023, EBIT again exhibits growth, reaching around $498.5 million by September 2023, reflecting an overall positive trend in earnings performance in the more recent periods.
- Interest expense, net
- Interest expense generally remains within the range of $34.8 million to $63.7 million across the entire period. Starting at $43.2 million in the first quarter of 2018, the interest expense peaked around $63.7 million in December 2020. Subsequent periods show a declining trend in interest expense, dropping to approximately $34.8 million by September 2023. This downward movement in net interest expense could be due to reduced borrowing costs or effective debt management strategies.
- Interest coverage ratio
- The interest coverage ratio is provided starting from the third quarter of 2018, where it was approximately 7.58, and exhibits an increasing trend through late 2019, peaking at about 12.94 in December 2019. This indicates improved ability to cover interest expenses from operating earnings during that period. From 2020 onward, the ratio declines to a range generally between 6.23 and 7.66 through 2021 and 2022, suggesting relatively stable but reduced coverage compared to the peak in 2019. In 2023, there is an uptrend in interest coverage again, reaching 10.35 by the third quarter, signaling an improvement in profitability relative to interest obligations in recent quarters.
- Overall summary
- The data reveal an initial strong growth in EBIT through 2019, with a subsequent period of stabilization and modest growth post-2020. Net interest expense shows a peak around late 2020, followed by a notable decrease through 2023. Correspondingly, the interest coverage ratio peaked in late 2019, declined during the early 2020s, and showed recovery by 2023. These trends indicate that the company enhanced its earnings and interest coverage capabilities over the long term, while managing to reduce its net interest expense in recent periods, which bodes well for financial health and operational efficiency.