Verisk Analytics Inc (VRSK)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	2,881,700	2,823,300	2,775,600	2,733,800	2,681,400	2,634,600	2,702,300	2,640,100	2,764,000	2,899,600	2,913,300	3,048,000	2,998,600	2,946,000	2,889,700	2,821,000	2,784,700	2,748,100	2,698,100	2,671,900
Property, plant and equipment	US$ in thousands	—	—	—	—	—	—	581,900	561,100	278,500	652,000	646,900	635,900	658,200	932,200	915,000	646,600	632,300	606,400	560,100	549,300
Fixed asset turnover		—	—	—	—	—	—	4.64	4.71	9.92	4.45	4.50	4.79	4.56	3.16	3.16	4.36	4.40	4.53	4.82	4.86

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,881,700K ÷ $—K
= —

The fixed asset turnover ratio measures a company's ability to generate sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that a company is utilizing its fixed assets efficiently to generate sales.

Based on the provided data for Verisk Analytics Inc, the fixed asset turnover ratio fluctuated over the quarters. It decreased from 4.86 as of March 31, 2020, to 3.16 as of June 30, 2021, before starting to increase again. Notably, there was a significant spike in the ratio to 9.92 as of December 31, 2022, indicating a substantial increase in sales generated from fixed assets during that period.

It is essential to monitor the trend of the fixed asset turnover ratio over time to assess the company's efficiency in utilizing its fixed assets. A consistent and stable ratio typically indicates a well-managed asset base and effective operations. Verisk Analytics Inc should continue to focus on optimizing the utilization of its fixed assets to drive sales and profitability in the future.