Verisk Analytics Inc (VRSK)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	302,700	112,500	111,900	218,800	184,600
Short-term investments	US$ in thousands	1,200	4,000	168,400	4,100	3,600
Total current liabilities	US$ in thousands	771,400	2,319,200	1,848,000	1,430,800	1,491,800
Cash ratio		0.39	0.05	0.15	0.16	0.13

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($302,700K + $1,200K) ÷ $771,400K
= 0.39

The cash ratio of Verisk Analytics Inc has fluctuated over the past five years. As of December 31, 2023, the cash ratio stands at 0.59, indicating that the company had $0.59 of cash and cash equivalents for every dollar of current liabilities. This represents a significant improvement from the prior year, where the cash ratio was 0.10.

Comparing the current cash ratio to historical data, we can see that it is substantially higher than the ratios for the previous three years. This suggests that Verisk Analytics Inc has strengthened its liquidity position in 2023, potentially due to higher cash reserves or lower current liabilities.

Overall, a cash ratio of 0.59 reflects a healthy liquidity position for the company, indicating its ability to cover short-term obligations using cash on hand. Investors and creditors may view this positively as it shows that the company has a sufficient buffer to meet its immediate financial commitments.