Roper Technologies (LTS:0KXM) Gross Margin %

: 69.74% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Roper Technologies's Gross Profit for the three months ended in Dec. 2023 was $1,125 Mil. Roper Technologies's Revenue for the three months ended in Dec. 2023 was $1,614 Mil. Therefore, Roper Technologies's Gross Margin % for the quarter that ended in Dec. 2023 was 69.74%.

The historical rank and industry rank for Roper Technologies's Gross Margin % or its related term are showing as below:

LTS:0KXM' s Gross Margin % Range Over the Past 10 Years
Min: 59.22 Med: 64.8 Max: 70.5
Current: 69.72

During the past 13 years, the highest Gross Margin % of Roper Technologies was 70.50%. The lowest was 59.22%. And the median was 64.80%.

LTS:0KXM's Gross Margin % is ranked better than
78.3% of 2627 companies
in the Software industry
Industry Median: 41.67 vs LTS:0KXM: 69.72

Roper Technologies had a gross margin of 69.74% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Roper Technologies was 1.90% per year.

Roper Technologies Gross Margin % Historical Data

The historical data trend for Roper Technologies's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Roper Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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66.42

70.31

70.50

69.86

69.72

Roper Technologies Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															70.05	69.31	69.69	70.12	69.74

Competitive Comparison

For the Software - Application subindustry, Roper Technologies's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Roper Technologies Gross Margin % Distribution

For the Software industry and Technology sector, Roper Technologies's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Roper Technologies's Gross Margin % falls into.

Roper Technologies Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Roper Technologies's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	4307.2	/	6177.8
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(6177.8 - 1870.6)	/	6177.8
	=	69.72 %

Roper Technologies's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1125.2	/	1613.5
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1613.5 - 488.3)	/	1613.5
	=	69.74 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Roper Technologies (LTS:0KXM) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Roper Technologies had a gross margin of 69.74% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Roper Technologies Gross Margin % Related Terms

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Roper Technologies (LTS:0KXM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Roper Technologies Inc (LTS:0KXM) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

ROP:USA EG:Mexico ROP:Germany R1OP34:Brazil

Address

6901 Professional Parkway East, Suite 200, Sarasota, FL, USA, 34240

Website

https://www.ropertech.com

Roper is a diversified technology company that operates through three segments: application software; network software and systems; and technology enabled products. The firm's culture emphasizes acquiring asset-light, cash-generative businesses. Roper then reinvests this excess cash in businesses that yield incrementally higher rates of return. While the businesses are managed in a decentralized manner, Roper does not passively manage its portfolio. Instead, Roper manages its businesses through the Socratic method and empowers decision-makers through group executive coaching. Roper has now rotated a clear majority of its business from legacy industrial products into technology software in mature, niche markets with large quantities of deferred revenue.

Roper Technologies (LTS:0KXM) Headlines

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