Verisk Analytics Inc (VRSK)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 10.37 | 1.85 | 8.32 | 9.75 | 13.02 |
| Receivables turnover | 7.20 | 7.06 | 5.95 | 5.78 | 5.30 |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 66.59 | — | — | — | — |
Based on the provided data for Verisk Analytics Inc's activity ratios, we can analyze the trends and performance over the past five years:
1. Receivables Turnover:
- The receivables turnover ratio measures how efficiently a company collects its outstanding accounts receivable during a specific period.
- Verisk Analytics Inc's receivables turnover has been relatively stable over the past five years, ranging from 5.58 to 7.50.
- A higher receivables turnover indicates that the company is able to collect its outstanding receivables more quickly, which is generally seen as a positive sign.
2. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company generates revenue from its working capital.
- Verisk Analytics Inc's working capital turnover was only provided for one year, showing a ratio of 69.29.
- A high working capital turnover ratio indicates that the company is effectively utilizing its working capital to generate sales.
3. Inventory Turnover and Payables Turnover:
- Unfortunately, data for inventory turnover and payables turnover for Verisk Analytics Inc are not provided, making it difficult to assess the company's performance in managing inventory and paying its suppliers efficiently.
In summary, based on the available data, Verisk Analytics Inc has shown a consistent level of efficiency in collecting its accounts receivable. However, a more comprehensive analysis would require additional information, particularly regarding inventory turnover and payables turnover, to fully evaluate the company's overall operational efficiency.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 35.19 | 197.55 | 43.87 | 37.44 | 28.03 |
| Days of sales outstanding (DSO) | days | 50.66 | 51.72 | 61.39 | 63.15 | 68.89 |
| Number of days of payables | days | — | — | — | — | — |
Days of Sales Outstanding (DSO) is a key activity ratio that measures the average number of days it takes for a company to collect revenue after a sale has been made. A lower DSO is generally preferred as it indicates a shorter collection period and better efficiency in managing accounts receivable. Verisk Analytics Inc's DSO has shown a decreasing trend over the past five years, from 65.45 days in 2019 to 48.69 days in 2023. This improvement suggests that the company has been more effective in collecting payments from its customers over time.
Days of Inventory on Hand (DOH) is another important activity ratio that assesses how efficiently a company manages its inventory by measuring the average number of days it takes to sell its inventory. Unfortunately, the data provided does not include information on Verisk Analytics Inc's DOH for the past five years, making it difficult to evaluate the company's inventory management performance.
Number of Days of Payables measures how long a company takes to pay its suppliers and is essential for understanding its working capital management. However, the data for Verisk Analytics Inc's number of days of payables is not available for the specified period, preventing an analysis of the company's payment practices.
In conclusion, based on the available information on Days of Sales Outstanding (DSO), Verisk Analytics Inc has shown an improvement in collecting payments from its customers efficiently over the past five years. Without data on Days of Inventory on Hand (DOH) and Number of Days of Payables, a comprehensive assessment of the company's overall activity ratios and working capital management cannot be provided.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 4.26 | 4.36 | 5.40 | 4.18 | 4.52 |
| Total asset turnover | 0.59 | 0.34 | 0.37 | 0.35 | 0.35 |
Verisk Analytics Inc's long-term activity ratios indicate how efficiently the company is utilizing its assets to generate revenue. The fixed asset turnover ratio has been relatively stable over the past five years, ranging from 4.40 to 4.76. This ratio measures how effectively the company is generating sales from its fixed assets, such as property, plant, and equipment. A higher ratio suggests that the company is effectively using its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio has shown some fluctuation over the same period, with values ranging from 0.36 to 0.61. This ratio measures the company's ability to generate sales from all its assets, including both fixed and current assets. A higher total asset turnover ratio indicates that the company is efficient in generating sales from its total asset base.
In terms of long-term activity efficiency, Verisk Analytics Inc has shown a stable performance in terms of generating revenue from its fixed assets, with a consistent fixed asset turnover ratio. However, the total asset turnover ratio has varied over the years, which may indicate fluctuations in the company's overall asset utilization efficiency. Further analysis and comparison with industry benchmarks would be necessary to fully assess the company's long-term activity efficiency.