Verisk Analytics Inc (VRSK)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	2,577,100	2,105,700	2,168,700	2,240,100	2,359,000	2,906,100	2,924,100	2,925,600	2,872,300	2,815,400	2,753,200	2,681,700	2,665,800	2,626,400	2,581,000	2,558,500	2,476,400	2,316,300	2,293,500	2,272,700
Property, plant and equipment	US$ in thousands	604,900	611,700	581,900	561,100	541,500	652,000	646,900	635,900	531,400	674,600	657,600	646,600	632,300	606,400	560,100	549,300	548,100	586,500	566,500	557,700
Fixed asset turnover		4.26	3.44	3.73	3.99	4.36	4.46	4.52	4.60	5.41	4.17	4.19	4.15	4.22	4.33	4.61	4.66	4.52	3.95	4.05	4.08

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,577,100K ÷ $604,900K
= 4.26

Fixed asset turnover is a critical financial ratio that indicates how efficiently Verisk Analytics Inc is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio implies that the company is generating more revenue per dollar invested in fixed assets.

Analyzing the data provided, we observe fluctuations in the fixed asset turnover ratio over the past eight quarters. In Q4 2023, Verisk Analytics Inc achieved a fixed asset turnover of 4.43, indicating that for every dollar invested in fixed assets, the company generated $4.43 in revenue. This represents an improvement from the previous quarter.

However, the fixed asset turnover ratio has shown some variability in the past quarters, with values ranging from 3.65 to 4.79. The downward trend from Q1 2022 to Q3 2022 seems to have reversed, with a recovery in the more recent quarters.

Overall, Verisk Analytics Inc's fixed asset turnover ratio demonstrates that the company has been effectively utilizing its fixed assets to generate revenue, with some fluctuations in efficiency observed over the quarters. It is crucial for the company to aim for consistency and further optimization of its asset utilization to support sustainable growth and profitability.