Verisk Analytics Inc (VRSK)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	810,100	925,100	907,400	794,200	744,900
Total current liabilities	US$ in thousands	771,400	2,319,200	1,848,000	1,430,800	1,491,800
Current ratio		1.05	0.40	0.49	0.56	0.50

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $810,100K ÷ $771,400K
= 1.05

The current ratio of Verisk Analytics Inc has shown fluctuations over the past five years. In 2023, the current ratio improved to 1.05 from the previous year's 0.40, indicating a significant strengthening of the company's short-term liquidity position. This suggests that the company's current assets, such as cash, inventory, and accounts receivable, are more than sufficient to cover its current liabilities due within one year.

In 2022, the current ratio was notably low at 0.40, signaling potential liquidity concerns as current assets were insufficient to cover short-term obligations. The company made a significant improvement in 2023 to bring the current ratio above 1, which is generally considered a healthy level for most businesses.

Looking back further, in 2021, 2020, and 2019, the current ratios were 0.49, 0.56, and 0.50, respectively. While these ratios were higher than 2022's ratio, they still indicated that Verisk Analytics Inc had struggled with maintaining a robust liquidity position in those years.

Overall, the improvement in the current ratio in 2023 is a positive sign for Verisk Analytics Inc, as it suggests a better ability to meet short-term obligations and manage working capital effectively. Monitoring this ratio over time will be essential to assess the company's ongoing liquidity health and financial stability.