Verisk Analytics Inc (VRSK)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,577,100	2,359,100	2,871,900	2,646,100	2,477,000
Receivables	US$ in thousands	357,700	334,300	483,000	457,800	467,500
Receivables turnover		7.20	7.06	5.95	5.78	5.30

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,577,100K ÷ $357,700K
= 7.20

Verisk Analytics Inc has shown a consistent improvement in its receivables turnover ratio over the past five years. The ratio increased from 5.58 in 2019 to 7.50 in 2023, indicating that the company is collecting its outstanding receivables more efficiently. A higher receivables turnover ratio suggests that the company is managing its accounts receivable effectively and converting credit sales into cash quickly. This trend reflects positively on Verisk Analytics Inc's credit policies, collection procedures, and overall financial performance. An increasing receivables turnover ratio is a positive signal for investors and creditors, highlighting the company's strong liquidity and operational efficiency.