Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Roper Technologies Inc., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Roper Technologies Inc. inventory turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Roper Technologies Inc. receivables turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Roper Technologies Inc. payables turnover ratio increased from 2020 to 2021 and from 2021 to 2022. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Roper Technologies Inc. number of days of inventory outstanding improved from 2020 to 2021 and from 2021 to 2022. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Roper Technologies Inc. number of days of receivables outstanding improved from 2020 to 2021 and from 2021 to 2022. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Roper Technologies Inc. operating cycle improved from 2020 to 2021 and from 2021 to 2022. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Roper Technologies Inc. number of days of payables outstanding decreased from 2020 to 2021 and from 2021 to 2022. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Roper Technologies Inc. cash conversion cycle improved from 2020 to 2021 and from 2021 to 2022. |
Inventory Turnover
Roper Technologies Inc., inventory turnover 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) | ||||||
| Cost of sales | 1,619,000) | 1,860,400) | 1,984,100) | 1,939,700) | 1,911,700) | |
| Inventories, net | 111,300) | 176,100) | 198,400) | 198,600) | 190,800) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 14.55 | 10.56 | 10.00 | 9.77 | 10.02 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Apple Inc. | 45.20 | 32.37 | 41.75 | 39.40 | — | |
| Arista Networks Inc. | 1.32 | 1.64 | 1.74 | 3.55 | — | |
| Cisco Systems Inc. | 7.52 | 11.50 | 13.74 | 13.91 | — | |
| Super Micro Computer Inc. | 2.84 | 2.90 | 3.30 | 4.48 | 3.43 | |
| Inventory Turnover, Sector | ||||||
| Technology Hardware & Equipment | 24.06 | 23.91 | 28.59 | 28.88 | — | |
| Inventory Turnover, Industry | ||||||
| Information Technology | 8.13 | 9.75 | 10.40 | 10.59 | — | |
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
Inventory turnover = Cost of sales ÷ Inventories, net
= 1,619,000 ÷ 111,300 = 14.55
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Roper Technologies Inc. inventory turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Receivables Turnover
Roper Technologies Inc., receivables turnover 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 revenues | 5,371,800) | 5,777,800) | 5,527,100) | 5,366,800) | 5,191,200) | |
| Accounts receivable, net | 724,500) | 839,400) | 863,000) | 791,600) | 700,800) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 7.41 | 6.88 | 6.40 | 6.78 | 7.41 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Apple Inc. | 13.99 | 13.92 | 17.03 | 11.35 | — | |
| Arista Networks Inc. | 4.75 | 5.71 | 5.95 | 6.15 | — | |
| Cisco Systems Inc. | 7.79 | 8.64 | 9.01 | 9.45 | — | |
| Super Micro Computer Inc. | 6.23 | 7.67 | 8.27 | 8.89 | 7.44 | |
| Receivables Turnover, Sector | ||||||
| Technology Hardware & Equipment | 12.46 | 12.78 | 14.72 | 10.89 | — | |
| Receivables Turnover, Industry | ||||||
| Information Technology | 7.42 | 7.56 | 8.00 | 7.59 | — | |
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
Receivables turnover = Net revenues ÷ Accounts receivable, net
= 5,371,800 ÷ 724,500 = 7.41
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Roper Technologies Inc. receivables turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Payables Turnover
Roper Technologies Inc., payables turnover 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) | ||||||
| Cost of sales | 1,619,000) | 1,860,400) | 1,984,100) | 1,939,700) | 1,911,700) | |
| Accounts payable | 122,600) | 150,800) | 177,800) | 162,000) | 165,300) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 13.21 | 12.34 | 11.16 | 11.97 | 11.57 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Apple Inc. | 3.49 | 3.89 | 4.01 | 3.50 | — | |
| Arista Networks Inc. | 7.33 | 5.27 | 6.23 | 9.41 | — | |
| Cisco Systems Inc. | 8.47 | 7.59 | 7.94 | 9.34 | — | |
| Super Micro Computer Inc. | 6.71 | 4.94 | 6.74 | 8.34 | 5.56 | |
| Payables Turnover, Sector | ||||||
| Technology Hardware & Equipment | 3.70 | 4.06 | 4.23 | 3.79 | — | |
| Payables Turnover, Industry | ||||||
| Information Technology | 4.54 | 4.99 | 5.36 | 5.27 | — | |
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
Payables turnover = Cost of sales ÷ Accounts payable
= 1,619,000 ÷ 122,600 = 13.21
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Roper Technologies Inc. payables turnover ratio increased from 2020 to 2021 and from 2021 to 2022. |
Working Capital Turnover
Roper Technologies Inc., working capital turnover 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 assets | 1,932,400) | 2,421,100) | 1,752,300) | 1,999,500) | 1,610,700) | |
| Less: Current liabilities | 2,892,500) | 3,121,800) | 2,444,400) | 2,397,400) | 1,448,200) | |
| Working capital | (960,100) | (700,700) | (692,100) | (397,900) | 162,500) | |
| Net revenues | 5,371,800) | 5,777,800) | 5,527,100) | 5,366,800) | 5,191,200) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | — | — | — | 31.95 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Apple Inc. | — | 39.10 | 7.16 | 4.56 | — | |
| Arista Networks Inc. | 1.03 | 0.80 | 0.76 | 0.84 | — | |
| Cisco Systems Inc. | 4.65 | 3.88 | 2.70 | 3.24 | — | |
| Super Micro Computer Inc. | 3.89 | 3.96 | 3.77 | 4.29 | 4.67 | |
| Working Capital Turnover, Sector | ||||||
| Technology Hardware & Equipment | — | 15.74 | 5.44 | 4.14 | — | |
| Working Capital Turnover, Industry | ||||||
| Information Technology | 5.64 | 3.82 | 2.84 | 3.06 | — | |
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
Working capital turnover = Net revenues ÷ Working capital
= 5,371,800 ÷ -960,100 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Roper Technologies Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 14.55 | 10.56 | 10.00 | 9.77 | 10.02 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 25 | 35 | 36 | 37 | 36 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Apple Inc. | 8 | 11 | 9 | 9 | — | |
| Arista Networks Inc. | 276 | 222 | 210 | 103 | — | |
| Cisco Systems Inc. | 49 | 32 | 27 | 26 | — | |
| Super Micro Computer Inc. | 128 | 126 | 110 | 81 | 106 | |
| Average Inventory Processing Period, Sector | ||||||
| Technology Hardware & Equipment | 15 | 15 | 13 | 13 | — | |
| Average Inventory Processing Period, Industry | ||||||
| Information Technology | 45 | 37 | 35 | 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).
1 2022 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 14.55 = 25
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Roper Technologies Inc. number of days of inventory outstanding improved from 2020 to 2021 and from 2021 to 2022. |
Average Receivable Collection Period
Roper Technologies Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 7.41 | 6.88 | 6.40 | 6.78 | 7.41 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 49 | 53 | 57 | 54 | 49 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Apple Inc. | 26 | 26 | 21 | 32 | — | |
| Arista Networks Inc. | 77 | 64 | 61 | 59 | — | |
| Cisco Systems Inc. | 47 | 42 | 41 | 39 | — | |
| Super Micro Computer Inc. | 59 | 48 | 44 | 41 | 49 | |
| Average Receivable Collection Period, Sector | ||||||
| Technology Hardware & Equipment | 29 | 29 | 25 | 34 | — | |
| Average Receivable Collection Period, Industry | ||||||
| Information Technology | 49 | 48 | 46 | 48 | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.41 = 49
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Roper Technologies Inc. number of days of receivables outstanding improved from 2020 to 2021 and from 2021 to 2022. |
Operating Cycle
Roper Technologies Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 25 | 35 | 36 | 37 | 36 | |
| Average receivable collection period | 49 | 53 | 57 | 54 | 49 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 74 | 88 | 93 | 91 | 85 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Apple Inc. | 34 | 37 | 30 | 41 | — | |
| Arista Networks Inc. | 353 | 286 | 271 | 162 | — | |
| Cisco Systems Inc. | 96 | 74 | 68 | 65 | — | |
| Super Micro Computer Inc. | 187 | 174 | 154 | 122 | 155 | |
| Operating Cycle, Sector | ||||||
| Technology Hardware & Equipment | 44 | 44 | 38 | 47 | — | |
| Operating Cycle, Industry | ||||||
| Information Technology | 94 | 85 | 81 | 82 | — | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 25 + 49 = 74
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Roper Technologies Inc. operating cycle improved from 2020 to 2021 and from 2021 to 2022. |
Average Payables Payment Period
Roper Technologies Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 13.21 | 12.34 | 11.16 | 11.97 | 11.57 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 28 | 30 | 33 | 30 | 32 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Apple Inc. | 105 | 94 | 91 | 104 | — | |
| Arista Networks Inc. | 50 | 69 | 59 | 39 | — | |
| Cisco Systems Inc. | 43 | 48 | 46 | 39 | — | |
| Super Micro Computer Inc. | 54 | 74 | 54 | 44 | 66 | |
| Average Payables Payment Period, Sector | ||||||
| Technology Hardware & Equipment | 99 | 90 | 86 | 96 | — | |
| Average Payables Payment Period, Industry | ||||||
| Information Technology | 80 | 73 | 68 | 69 | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 13.21 = 28
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Roper Technologies Inc. number of days of payables outstanding decreased from 2020 to 2021 and from 2021 to 2022. |
Cash Conversion Cycle
Roper Technologies Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 25 | 35 | 36 | 37 | 36 | |
| Average receivable collection period | 49 | 53 | 57 | 54 | 49 | |
| Average payables payment period | 28 | 30 | 33 | 30 | 32 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 46 | 58 | 60 | 61 | 53 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Apple Inc. | -71 | -57 | -61 | -63 | — | |
| Arista Networks Inc. | 303 | 217 | 212 | 123 | — | |
| Cisco Systems Inc. | 53 | 26 | 22 | 26 | — | |
| Super Micro Computer Inc. | 133 | 100 | 100 | 78 | 89 | |
| Cash Conversion Cycle, Sector | ||||||
| Technology Hardware & Equipment | -55 | -46 | -48 | -49 | — | |
| Cash Conversion Cycle, Industry | ||||||
| Information Technology | 14 | 12 | 13 | 13 | — | |
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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 25 + 49 – 28 = 46
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Roper Technologies Inc. cash conversion cycle improved from 2020 to 2021 and from 2021 to 2022. |