Verisk Analytics Inc (VRSK)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	230,500	876,500	824,600	1,057,800	993,900
Inventory	US$ in thousands	—	5,100	446,300	102,600	81,200
Inventory turnover		—	171.86	1.85	10.31	12.24

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $230,500K ÷ $—K
= —

Verisk Analytics Inc's inventory turnover has displayed significant fluctuations over the years. In 2020, the company had an inventory turnover of 12.24, indicating that its inventory was sold and replaced approximately 12 times during that period. The ratio decreased to 10.31 in 2021, suggesting a slight slowdown in inventory turnover.

However, there was a drastic drop in inventory turnover in 2022, with the ratio plummeting to 1.85. This sharp decline could indicate potential issues such as excess inventory or difficulties in selling products efficiently during that period.

The inventory turnover ratio then sharply spiked to 171.86 in 2023, which is a highly exceptional and uncommon figure. Such an extraordinarily high ratio may indicate a significant improvement in inventory management efficiency, with products being sold and replenished rapidly.

Unfortunately, data for 2024 is not available (denoted by "—"), making it challenging to assess the latest trend in inventory turnover. Nonetheless, based on the available data, it is evident that Verisk Analytics Inc has experienced fluctuations in its inventory turnover performance, which could reflect changes in sales, production, or inventory management strategies over the years. It would be important for the company to maintain a balance in inventory turnover to ensure efficient use of resources and optimal performance in the future.