Verisk Analytics Inc (VRSK)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	291,200	302,700	112,500	280,300	218,800
Short-term investments	US$ in thousands	—	1,200	4,000	5,000	4,100
Total current liabilities	US$ in thousands	1,238,900	771,400	2,319,200	1,843,200	1,430,800
Cash ratio		0.24	0.39	0.05	0.15	0.16

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($291,200K + $—K) ÷ $1,238,900K
= 0.24

The cash ratio of Verisk Analytics Inc has fluctuated over the past five years. As of December 31, 2020, the company's cash ratio was 0.16, indicating that it had $0.16 of cash and cash equivalents for every $1 of current liabilities. Subsequently, by December 31, 2021, the cash ratio decreased slightly to 0.15.

However, by December 31, 2022, Verisk Analytics Inc experienced a significant decline in its cash ratio to 0.05, suggesting a lower level of liquidity compared to previous years. This decrease may raise concerns about the company's ability to meet its short-term obligations using its cash reserves alone.

The situation improved by December 31, 2023, when the cash ratio surged to 0.39, indicating a more robust liquidity position for the company. This improvement may be attributed to better cash management practices or an increase in cash holdings relative to current liabilities.

As of December 31, 2024, the cash ratio stood at 0.24, reflecting a moderate decline from the previous year but still indicating that Verisk Analytics Inc maintains a healthy level of cash to cover its short-term financial obligations.

Overall, fluctuations in the cash ratio of Verisk Analytics Inc over the past five years highlight the company's evolving liquidity position and the importance of monitoring cash management practices to ensure adequate funds are available to meet its short-term commitments.