Verisk Analytics Inc (VRSK)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 10.37 | 9.53 | 9.12 | 10.14 | 1.85 | 6.65 | 6.94 | 5.22 | 8.32 | 8.27 | 8.36 | 9.61 | 9.75 | 12.07 | 12.21 | 15.06 | 13.02 | 13.09 | 14.70 | 15.00 |
| Receivables turnover | 7.20 | 5.69 | 5.39 | 5.17 | 7.06 | 5.83 | 5.28 | 5.54 | 5.95 | 5.76 | 5.53 | 5.16 | 5.82 | 5.72 | 5.68 | 4.89 | 5.30 | 5.40 | 4.90 | 5.11 |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 66.59 | 14.61 | 40.16 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Verisk Analytics Inc's activity ratios demonstrate its efficiency in managing various aspects of its operations.
1. Receivables turnover: The company's receivables turnover has been relatively stable over the quarters, ranging from 5.48 to 7.50. This ratio indicates that Verisk Analytics is collecting its accounts receivable approximately 5 to 7 times per year. A higher turnover implies more efficient collections, potentially improving cash flow and reducing the risk of bad debts.
2. Working capital turnover: Verisk Analytics displays significant fluctuations in its working capital turnover, with a notable increase from Q1 2023 (42.63) to Q4 2023 (69.29). This suggests that the company is generating sales revenues more efficiently relative to the working capital it is employing. A higher working capital turnover indicates that the company is utilizing its resources effectively to generate sales.
3. Inventory turnover and payables turnover: The absence of data for inventory turnover and payables turnover limits a comprehensive analysis of Verisk Analytics' inventory management and payment terms with suppliers. These ratios are crucial for assessing the company's inventory efficiency and the speed at which it pays off its creditors.
In conclusion, while Verisk Analytics demonstrates strong efficiency in managing receivables and working capital turnover, further insight into inventory turnover and payables turnover is needed to provide a complete picture of the company's operational efficiency.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 35.19 | 38.31 | 40.03 | 36.00 | 197.55 | 54.92 | 52.62 | 69.97 | 43.87 | 44.14 | 43.68 | 37.99 | 37.43 | 30.24 | 29.90 | 24.23 | 28.03 | 27.89 | 24.83 | 24.33 |
| Days of sales outstanding (DSO) | days | 50.66 | 64.14 | 67.67 | 70.60 | 51.73 | 62.65 | 69.10 | 65.91 | 61.38 | 63.40 | 66.05 | 70.71 | 62.68 | 63.84 | 64.27 | 74.65 | 68.91 | 67.57 | 74.48 | 71.40 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Days of inventory on hand (DOH) data is not available in the provided table.
Days of sales outstanding (DSO) for Verisk Analytics Inc have shown some variability over the past eight quarters, ranging from a low of 48.69 days to a high of 66.64 days. DSO measures how long it takes for the company to collect payment from its customers, and a lower number is generally preferable as it indicates a shorter collection period.
Unfortunately, the table does not provide information on the number of days of payables, which would have allowed for a comprehensive analysis of the company's activity ratios. However, based on the available DSO data, it seems that Verisk Analytics Inc may have experienced some challenges in collecting payments efficiently in certain quarters, as indicated by the higher DSO values recorded.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.59 | 0.48 | 0.50 | 0.53 | 0.34 | 0.42 | 0.39 | 0.36 | 0.37 | 0.37 | 0.36 | 0.34 | 0.35 | 0.36 | 0.37 | 0.37 | 0.35 | 0.37 | 0.37 | 0.36 |
Verisk Analytics Inc's long-term activity ratios indicate the efficiency of the company in generating sales in relation to its fixed and total assets over the past eight quarters.
The fixed asset turnover ratio has shown fluctuation over this period, ranging from a high of 4.79 in Q1 2022 to a low of 3.65 in Q3 2023. The significant variation in this ratio indicates that the company may be either effectively utilizing its fixed assets to generate sales or facing challenges in optimal resource utilization. Generally, a higher fixed asset turnover ratio is considered more favorable as it suggests that the company is efficiently using its fixed assets to generate revenue.
In contrast, the total asset turnover ratio has also displayed fluctuations, with a range of 0.37 in Q1 2022 to 0.61 in Q4 2023. This ratio indicates how effectively the company is using its total assets to generate sales. A higher total asset turnover ratio indicates that the company is efficient in generating sales relative to its total assets. The variability in this ratio may imply changes in the company's sales volume or asset productivity over time.
Overall, it appears that Verisk Analytics Inc has experienced varying levels of efficiency in utilizing its fixed and total assets to generate sales throughout the analyzed period. Further investigation into the underlying factors contributing to these fluctuations would be necessary to provide a more in-depth analysis of the company's long-term activity performance.