Introduction
Roper Technologies, Inc. is a diversified technology company.
The Company’s segment reporting structure is based on business model and delivery of performance obligations. The three reportable segments are as follows:
–Application Software – Aderant, CBORD, Clinisys, Data Innovations, Deltek, Frontline, IntelliTrans, PowerPlan, Strata, Vertafore
–Network Software – ConstructConnect, DAT, Foundry, iPipeline, iTradeNetwork, Loadlink, MHA, SHP, SoftWriters
–Technology Enabled Products – CIVCO Medical Solutions, FMI, Inovonics, IPA, Neptune, Northern Digital, rf IDEAS, Verathon
Balance Sheet Analysis
Roper Technologies’ total assets reached $28.17 billion and $27 billion in 2023 and 2022, respectively.
Roper Technologies’ balance sheet shocks me, and I don’t know what to say.
Roper Technologies’ goodwill reached $17.1 billion and $16 billion in 2023 and 2022, respectively.
In 2023, goodwill accounted for 60.7% of total assets.
Roper Technologies’ intangible assets were $8.2 billion and $8 billion in 2023 and 2022, respectively.
In 2023, intangible assets consisted of 29.1% of total assets.
We can see that the amount of goodwill and intangible assets accounted for 89.8% of total assets.
We believe that in the past, Roper Technologies have conducted a large number of mergers and acquisitions, which Roper Technologies also mentioned in its financial report.
However, in our view, goodwill and intangible assets are a cost, the cost of mergers and acquisitions.
For Roper Technologies, mergers and acquisitions are a major way of expansion and may also be an ongoing behavior.
Total liabilities were $10.7 billion, and this debt can only be repaid by cash flow provided by operating activities. Roper Technologies’ cash flow was still good.
Cash provided by operating activities was $2 billion, $730 million, and $2 billion in 2023, 2022, and 2021, respectively.
Income statement analysis
Roper Technologies’ revenues reached $6.18 billion, $5.37 billion, and $4.83 billion in 2023, 2022, and 2021, respectively.
revenues increased by 15% year-over-year in 2023.
revenues increased 11% year-over-year in 2022.
Roper Technologies’ operating profits reached $1.37 billion, $980 million, and $800 million in 2023, 2022, and 2021, respectively.
Operating profit margin was 22%, 18%, and 16.6% in 2023, 2022, and 2021, respectively.
Cash flow analysis
The amount of acquisitions businesses was $2.05 billion, $4.28 billion, and $220 million in 2023, 2022, and 2021, respectively.
Expansion by acquiring other companies requires a steady stream of money. We can see that free cash flow may not be enough for consumption, so there will be no money to repurchase shares and pay dividends.
Cash dividends to shareholders was $290 million, $260 million, and $240 million in 2023, 2022, and 2021, respectively.
Summary
Expansion by acquiring other companies costs a lot of money.
Roper Technologies’ cash returned to shareholders is very smal.
Disclaimer: The content is for reference only and does not constitute investment advice.