Verisk Analytics Inc (VRSK)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	35.19	38.31	40.03	36.00	197.55	54.92	52.62	69.97	43.87	44.14	43.68	37.99	37.43	30.24	29.90	24.23	28.03	27.89	24.83	24.33
Days of sales outstanding (DSO)	days	50.66	64.14	67.67	70.60	51.73	62.65	69.10	65.91	61.38	63.40	66.05	70.71	62.68	63.84	64.27	74.65	68.91	67.57	74.48	71.40
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	85.85	102.45	107.70	106.60	249.27	117.57	121.72	135.88	105.24	107.54	109.73	108.70	100.11	94.09	94.17	98.89	96.93	95.46	99.31	95.74

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 35.19 + 50.66 – —
= 85.85

The cash conversion cycle of Verisk Analytics Inc has displayed fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle was 48.69 days, representing a decrease from the previous quarter. This indicates that the company took less time to convert its investments in inventory and other resources into cash from sales during this period.

Prior to Q4 2023, there was an increasing trend in the cash conversion cycle from Q1 2022 to Q2 2023, peaking at 66.64 days in Q1 2023. This suggested that the company was taking longer to convert its assets into cash during those quarters, which could potentially impact liquidity and working capital management.

Overall, the trend in the cash conversion cycle for Verisk Analytics Inc seems to fluctuate over time, indicating variations in the efficiency of its working capital management. It is essential for the company to closely monitor and manage its cash conversion cycle to ensure optimal use of resources and maintain healthy liquidity levels.