Verisk Analytics Inc (VRSK)

Short-term

Turnover ratios

Verisk Analytics Inc's activity ratios provide insights into its efficiency in managing its assets and liabilities.

1. Inventory Turnover: This ratio reflects how quickly Verisk Analytics Inc is selling its inventory. The trend shows a decrease in inventory turnover from 12.24 in 2020 to 1.85 in 2022, but a significant increase to 171.86 in 2023. The lack of data for 2024 makes it difficult to assess the current status. A high inventory turnover indicates efficient operations, while a low turnover may suggest overstocking or slow sales.

2. Receivables Turnover: There is a lack of data for receivables turnover for all years provided. This ratio would have indicated how efficiently the company collects its receivables from customers. A higher turnover ratio would suggest faster collections and efficient credit management.

3. Payables Turnover: Data is unavailable for payables turnover for all years provided. This ratio would have reflected how quickly the company pays its suppliers. A higher turnover would indicate efficient management of payables.

4. Working Capital Turnover: The working capital turnover ratio for Verisk Analytics Inc was at 69.29 in 2023. This ratio indicates how effectively the company is utilizing its working capital to generate revenue. A higher ratio suggests efficient use of working capital, while a low ratio may indicate inefficiencies in capital management.

In conclusion, while the inventory turnover ratio fluctuated over the years, the lack of data for receivables, payables, and working capital turnover limits a comprehensive assessment of Verisk Analytics Inc's overall activity efficiency. It would be beneficial to have more data to analyze these ratios in a more holistic manner.

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Average number of days

Verisk Analytics Inc's activity ratios provide insight into how efficiently the company manages its operations related to inventory, accounts receivable, and accounts payable.

1. Days of Inventory on Hand (DOH):
- Verisk Analytics Inc's DOH has shown fluctuations over the years, ranging from 2.12 days in December 2023 to 197.55 days in December 2022.
- A lower DOH indicates that the company is selling off its inventory quickly, which is generally a positive sign as it reduces the risk of obsolete inventory.
- The significant increase in DOH in December 2022 suggests a potential issue with inventory management that year, which may have been resolved by reducing it to 2.12 days in December 2023, possibly due to inventory write-offs or better sales forecasting.

2. Days of Sales Outstanding (DSO):
- The DSO data for Verisk Analytics Inc is not provided, indicating that the company's accounts receivable turnover is not available in the dataset.
- DSO measures how quickly a company collects outstanding receivables from its customers, with a lower DSO indicating faster collections and better cash flow management.

3. Number of Days of Payables:
- Similar to DSO, the information on the number of days of payables is also not available for Verisk Analytics Inc in the dataset.
- Monitoring the number of days of payables can provide insights into how long the company takes to pay its suppliers, impacting cash flow and relationships with vendors.

In summary, while the analysis of Verisk Analytics Inc's inventory turnover indicates fluctuations in inventory management efficiency, further data on accounts receivable turnover and payables turnover would be necessary for a comprehensive assessment of the company's overall activity ratios.

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Long-term

Verisk Analytics Inc's long-term activity ratios can provide insights into the company's efficiency in utilizing its fixed assets and total assets to generate revenue.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures the company's efficiency in generating sales revenue from its fixed assets.
- Verisk Analytics Inc's fixed asset turnover has generally been increasing over the years, from 4.40 in 2020 to 4.56 in 2021 and a significant jump to 8.97 in 2022.
- The high fixed asset turnover in 2022 indicates that the company is utilizing its fixed assets more efficiently to generate sales compared to the previous years.
- However, the data for 2023 and 2024 is not available, so we cannot assess the trend for those years.

2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently the company is using its total assets to generate revenue.
- Verisk Analytics Inc's total asset turnover has shown fluctuation over the years, decreasing from 0.37 in 2020 to 0.36 in 2022, then significantly increasing to 0.61 in 2023 before dropping to 0.17 in 2024.
- The increase in total asset turnover in 2023 suggests that the company effectively utilized its assets to generate more sales. However, the sharp decline in 2024 could indicate possible challenges in asset utilization efficiency.

Overall, Verisk Analytics Inc's fixed asset turnover has shown improvement, indicating better efficiency in utilizing fixed assets, while the total asset turnover has fluctuated, showing mixed trends in asset utilization efficiency over the years. Additional data for 2023 and 2024 would provide a clearer picture of the company's performance in utilizing its assets effectively to generate revenue.