Verisk Analytics Inc (VRSK)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	911,600	810,100	925,100	902,600	794,200
Total current liabilities	US$ in thousands	1,238,900	771,400	2,319,200	1,843,200	1,430,800
Current ratio		0.74	1.05	0.40	0.49	0.56

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $911,600K ÷ $1,238,900K
= 0.74

Verisk Analytics Inc's current ratio has shown fluctuations over the past five years. As of December 31, 2020, the current ratio was 0.56, indicating that the company may have had difficulties meeting its short-term obligations using its current assets alone.

The ratio decreased further to 0.49 by December 31, 2021, suggesting a potential liquidity challenge for Verisk Analytics. However, by December 31, 2022, the current ratio dropped even lower to 0.40, indicating a significant decline in the company's ability to cover its short-term liabilities with current assets.

The trend shifted positively by December 31, 2023, as the current ratio improved to 1.05. This increase suggests that Verisk Analytics had a more comfortable financial position with ample current assets to meet its short-term obligations.

However, by December 31, 2024, the current ratio declined slightly to 0.74, indicating a decrease in the company's short-term liquidity compared to the previous year.

Overall, Verisk Analytics Inc's current ratio has exhibited volatility over the past five years, with significant fluctuations in its ability to cover short-term obligations with current assets. It is crucial for the company to closely monitor and manage its liquidity position to ensure it can meet its financial obligations timely and efficiently.