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Roper Technologies (MEX:EG) Financial Strength : 5 (As of Sep. 2024)


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What is Roper Technologies Financial Strength?

Roper Technologies has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Roper Technologies's Interest Coverage for the quarter that ended in Sep. 2024 was 7.34. Roper Technologies's debt to revenue ratio for the quarter that ended in Sep. 2024 was 1.19. As of today, Roper Technologies's Altman Z-Score is 3.64.


Competitive Comparison of Roper Technologies's Financial Strength

For the Software - Application subindustry, Roper Technologies's Financial Strength, along with its competitors' market caps and Financial Strength 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's Financial Strength Distribution in the Software Industry

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

* The bar in red indicates where Roper Technologies's Financial Strength falls into.



Roper Technologies Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Roper Technologies's Interest Expense for the months ended in Sep. 2024 was MXN-1,333 Mil. Its Operating Income for the months ended in Sep. 2024 was MXN9,778 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was MXN151,174 Mil.

Roper Technologies's Interest Coverage for the quarter that ended in Sep. 2024 is

Interest Coverage=-1*Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*9778.203/-1333.033
=7.34

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Roper Technologies's Debt to Revenue Ratio for the quarter that ended in Sep. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(13763.52 + 151174.247) / 138982.012
=1.19

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Roper Technologies has a Z-score of 3.64, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.64 is strong.

* 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.


Roper Technologies  (MEX:EG) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Roper Technologies has the Financial Strength Rank of 5.


Roper Technologies Financial Strength Related Terms

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Roper Technologies Business Description

Traded in Other Exchanges
Address
6496 University Parkway, Sarasota, FL, USA, 34240
Roper Technologies is a diversified technology company that operates three segments: application software, network software, and technology enabled products. Roper acquires asset light, cash generative businesses and deploys excess cash to acquire further portfolio companies. The firm operates a highly decentralized model with portfolio company management holding autonomy and accountability for key operational decisions, and a small, centralized team overseeing capital deployment and providing executive coaching and reviewing strategic goals.