Verisk Analytics Inc (VRSK)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 2.12 | 197.55 | 35.40 | 29.82 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 2.12 | 197.55 | 35.40 | 29.82 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Verisk Analytics Inc has shown varying trends over the last five years.
- In December 2020, the company had a cash conversion cycle of 29.82 days, indicating that it took approximately 29.82 days to convert its investments in inventory and other resources into cash inflows from sales.
- By December 2021, the cash conversion cycle increased to 35.40 days, suggesting a slight slowdown in the company's efficiency in managing its working capital.
- Unexpectedly, in December 2022, the cash conversion cycle significantly increased to 197.55 days, which could be a cause for concern. This considerable jump may indicate issues with inventory management, collection of receivables, or delays in paying suppliers, impacting the company's liquidity position.
- However, the situation improved notably by December 2023, with the cash conversion cycle decreasing sharply to 2.12 days. This quick conversion cycle suggests that the company efficiently managed its working capital, potentially leading to better cash flow management and liquidity.
- Finally, by December 2024, the cash conversion cycle reached 0.00 days, which is an ideal scenario indicating that Verisk Analytics Inc was able to convert its investments into cash almost instantly, showcasing a highly efficient working capital management.
In conclusion, while there have been fluctuations in Verisk Analytics Inc's cash conversion cycle over the years, with some periods of concern, the company managed to improve its efficiency significantly in later years, which could positively impact its financial health and liquidity.
Peer comparison
Dec 31, 2024