Verisk Analytics Inc (VRSK)

Working capital turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Revenue (ttm) US$ in thousands 2,881,700 2,823,300 2,775,600 2,733,800 2,681,400 2,634,600 2,702,300 2,640,100 2,764,000 2,899,600 2,913,300 3,048,000 2,998,600 2,946,000 2,889,700 2,821,000 2,784,700 2,748,100 2,698,100 2,671,900
Total current assets US$ in thousands 911,600 1,092,600 1,307,200 1,017,000 810,100 928,200 854,800 790,800 925,100 918,400 1,186,600 1,119,400 902,600 934,100 918,700 1,041,600 794,200 799,700 878,700 814,000
Total current liabilities US$ in thousands 74,700 1,335,100 1,371,300 929,800 771,400 784,100 800,800 890,100 2,319,200 1,980,300 2,112,500 2,404,600 1,843,200 1,843,100 1,493,900 1,622,900 1,430,800 1,422,900 1,490,300 1,597,900
Working capital turnover 3.44 — — 31.35 69.29 18.28 50.04 — — — — — — — — — — — — —

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,881,700K ÷ ($911,600K – $74,700K)
= 3.44

The Working Capital Turnover ratio for Verisk Analytics Inc has been volatile over the period under review. The ratio was not available for analysis for most of the quarters, indicating incomplete data or potentially significant fluctuations in working capital. However, in the quarters where data was available, the company's working capital turnover showed some variation.

As of March 31, 2024, the working capital turnover ratio stood at 31.35, which signifies that Verisk Analytics Inc generated $31.35 in revenue for every dollar of working capital invested during that period.

The sudden spike in the ratio to 69.29 on December 31, 2023, followed by a decrease to 31.35 on March 31, 2024, could indicate fluctuations in the company's working capital management efficiency and/or revenue generation during those periods.

It is essential for the company to maintain a stable working capital turnover ratio over time to ensure optimal utilization of its working capital and efficiency in generating revenue from its operational activities. Continual monitoring and analysis of this ratio will provide insights into the company's liquidity management and operational efficiency.