Roper Technologies (Roper Technologies) Interest Coverage

: 9.24 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Roper Technologies's Operating Income for the three months ended in Dec. 2023 was $463 Mil. Roper Technologies's Interest Expense for the three months ended in Dec. 2023 was $-50 Mil. Roper Technologies's interest coverage for the quarter that ended in Dec. 2023 was 9.24. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Roper Technologies's Interest Coverage or its related term are showing as below:

ROP' s Interest Coverage Range Over the Past 10 Years
Min: 4.96 Med: 7.8 Max: 12.71
Current: 10.6

ROP's Interest Coverage is ranked worse than
65.94% of 1603 companies
in the Software industry
Industry Median: 29.52 vs ROP: 10.60

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Roper Technologies Interest Coverage Historical Data

The historical data trend for Roper Technologies's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Roper Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

7.13

4.96

5.71

7.92

10.60

Roper Technologies Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																7.67	10.72	12.51	10.52	9.24

Competitive Comparison

For the Software - Application subindustry, Roper Technologies's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Software industry and Technology sector, Roper Technologies's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Roper Technologies's Interest Coverage falls into.

Roper Technologies Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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

Here, for the fiscal year that ended in Dec. 2023, Roper Technologies's Interest Expense was $-165 Mil. Its Operating Income was $1,745 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,831 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1745.2	/	-164.7
	=	10.60

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

Here, for the three months ended in Dec. 2023, Roper Technologies's Interest Expense was $-50 Mil. Its Operating Income was $463 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,831 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	462.8	/	-50.1
	=	9.24

The higher the ratio, the stronger the company's Financial Strength is.

Roper Technologies (NAS:ROP) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Roper Technologies Interest Coverage Related Terms

Thank you for viewing the detailed overview of Roper Technologies's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Roper Technologies (Roper Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Roper Technologies Inc (NAS:ROP) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

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.

Executives

Robert D Johnson	director	HONEYWELL, 1944 E SKY HARBOR CIRCLE, PHOENIX AZ 85034
Christopher Wright	director	C/O GENAISSANCE PHARMACEUTICALS INC, 5 SCIENCE PARK, NEW HAVEN CT 06511
Laurence Neil Hunn	officer: Executive Vice President	100 NORTH POINT CENTER EAST, SUITE 200, ALPHARETTA GA 30022
Shellye L Archambeau	director	1095 AVENUE OF THE AMERICAS, 8TH FLOOR, NEW YORK NY 10036
Jason Conley	officer: Vice President and Controller	C/O ROPER TECHNOLOGIES, INC., 6901 PROFESSIONAL PARKWAY, SARASOTA FL 34240
Richard F Wallman	director	HONEYWELL, 101 COLUMBIA ROAD, MORRISTOWN NJ 07962
Brandon L Cross	officer: VP and Corporate Controller	6901 PROFESSIONAL PARKWAY, SUITE 200, SARASOTA FL 34240
Robert Crisci	officer: Vice President and CFO	C/O ROPER TECHNOLOGIES, INC., 6901 PROFESSIONAL PARKWAY, SARASOTA FL 34240
John K Stipancich	officer: VP, GC & Secretary	C/O ROPER TECHNOLOGIES, INC., 6901 PROFESSIONAL PARKWAY E, STE. 200, SARASOTA FL 34240
Joyce Thomas Patrick Jr	director	2099 PENNSYLVANIA AVENUE, NW, 12TH FLOOR, WASHINGTON DC 22207
Irene M Esteves	director	C/O TIME WARNER CABLE INC., 60 COLUMBUS CIRCLE, 17TH FLOOR, NEW YORK NY 10023
Amy Woods Brinkley	director	BANK OF AMERICA CORP, 100 NORTH TRYON ST NC1-007-58-04, CHARLOTTE NC 28255
Fort John F Iii	director	C/O ROPER INDUSTRIES INC, 2160 SATELLITE BLVD, DULUTH GA 30097
Wilbur J Prezzano	director	13515 BALLANTYNE CORPORATE PL, CHARLOTTE NC 28277
Knowling Robert E Jr	director	C/O HEWLETT-PACKARD CO, 3000 HANOVER STREET, PALO ALTO CA 94304