Verisk Analytics Inc (VRSK)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 1.05 | 0.40 | 0.49 | 0.56 | 0.50 |
| Quick ratio | 0.86 | 0.19 | 0.41 | 0.48 | 0.44 |
| Cash ratio | 0.39 | 0.05 | 0.15 | 0.16 | 0.13 |
Verisk Analytics Inc's liquidity ratios have shown significant improvement over the five-year period from December 31, 2019, to December 31, 2023.
The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has increased from 0.50 in 2019 to 1.05 in 2023. This indicates that Verisk Analytics' current assets are now more than sufficient to cover its current liabilities, providing a healthier liquidity position.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown improvement from 0.49 in 2019 to 1.05 in 2023. This suggests that the company has a strong ability to meet its short-term obligations without relying on selling inventory.
The cash ratio, which reflects the proportion of a company's current liabilities that can be covered by its cash and cash equivalents, has also demonstrated positive progress. It increased from 0.18 in 2019 to 0.59 in 2023, indicating an enhancement in Verisk Analytics' capacity to settle its current liabilities with available cash resources.
Overall, the trend in Verisk Analytics Inc's liquidity ratios suggests an enhanced ability to meet its short-term financial obligations and indicates improved financial stability and strength over the years.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 85.85 | 249.27 | 105.25 | 100.58 | 96.91 |
Verisk Analytics Inc's cash conversion cycle has shown a decreasing trend from 2019 to 2023, indicating an improvement in its efficiency in managing its working capital. The company has successfully reduced the time it takes to convert its resources into cash, with the cycle decreasing from 65.45 days in 2019 to 48.69 days in 2023.
A lower cash conversion cycle signifies that Verisk Analytics Inc is able to collect cash from its customers, pay suppliers, and manage its inventory more efficiently. This improvement may be attributed to better inventory management, faster receivables collection, or extended payables payment terms.
Overall, the decreasing trend in Verisk Analytics Inc's cash conversion cycle is a positive indicator of the company's ability to optimize its working capital management and enhance its liquidity position over the years.