Verisk Analytics Inc (VRSK)

Short-term

Turnover ratios

Verisk Analytics Inc's activity ratios provide useful insights into the efficiency of the company's operations.

1. Inventory Turnover: Verisk Analytics Inc's inventory turnover ratio declined from 15.06 on March 31, 2020, to 10.37 on December 31, 2023, before increasing to 13.64 on September 30, 2024. A higher inventory turnover indicates that the company is selling its inventory more quickly, which can be a positive sign of efficient inventory management.

2. Receivables Turnover: No data is available for Verisk Analytics Inc's receivables turnover, meaning the company's ability to collect outstanding receivables efficiently cannot be evaluated.

3. Payables Turnover: There is no information provided for the payables turnover ratio, which would have indicated the speed at which Verisk Analytics Inc is paying its suppliers.

4. Working Capital Turnover: Verisk Analytics Inc's working capital turnover ratio increased significantly from 50.04 on June 30, 2023, to 69.29 on December 31, 2023, before decreasing to 3.44 on December 31, 2024. A higher working capital turnover ratio suggests that the company is generating more revenue per dollar of working capital employed. A declining trend in this ratio may indicate inefficiencies in the utilization of working capital.

Overall, Verisk Analytics Inc's inventory turnover and working capital turnover ratios show fluctuations over the years, indicating variability in the company's operational efficiency and effectiveness in managing its resources to generate revenue.

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Average number of days

Verisk Analytics Inc's activity ratios provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand:
- Verisk Analytics Inc's days of inventory on hand have fluctuated over the years, ranging from as low as 24.23 days to as high as 175.56 days.
- The increase in days of inventory on hand from 2022 to 2023 suggests a potential inefficiency in managing inventory levels. However, there was a notable decrease in days of inventory on hand in 2024.
- A higher number of days of inventory on hand may indicate slow-moving inventory or potential issues in demand forecasting and supply chain management.

2. Days of Sales Outstanding (DSO):
- The data provided does not include any information on days of sales outstanding for Verisk Analytics Inc, which could indicate that the company's accounts receivable turnover is not a key focus area for analysis or monitoring.

3. Number of Days of Payables:
- Similarly, there is no data available on the number of days of payables for Verisk Analytics Inc, which would have provided insights into the company's payment terms with suppliers and the efficiency of managing its accounts payable.

Overall, based on the limited information available, it can be concluded that while inventory management may require attention based on the significant fluctuations in days of inventory on hand, further analysis of accounts receivable and accounts payable is needed to gain a comprehensive understanding of Verisk Analytics Inc's overall efficiency in managing its working capital.

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Long-term

Verisk Analytics Inc's fixed asset turnover ratio has shown some fluctuations over the past few years, ranging from 3.16 to as high as 9.92. Specifically, the company experienced a significant increase in fixed asset turnover from September 30, 2022, to December 31, 2022, where it reached the peak value of 9.92. This could indicate that the company effectively utilized its fixed assets to generate revenue during that period.

On the other hand, the total asset turnover ratio has also fluctuated, albeit to a lesser extent compared to fixed asset turnover. The ratio ranged from 0.36 to 2.12, with a noticeable increase from March 31, 2023, to December 31, 2024. This indicates that Verisk Analytics Inc managed to generate more revenue relative to its total assets during this period.

Overall, both ratios provide insights into how efficiently Verisk Analytics Inc is utilizing its assets to generate revenue. A higher fixed asset turnover ratio suggests effective utilization of fixed assets, while a higher total asset turnover ratio indicates better overall asset efficiency. A detailed analysis of these ratios in conjunction with other financial metrics can provide a more comprehensive view of the company's operational efficiency and performance.