Verisk Analytics Inc (VRSK)

Liquidity ratios

	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
Current ratio	1.05	1.18	1.07	0.89	0.40	0.46	0.56	0.47	0.49	0.51	0.61	0.64	0.56	0.56	0.59	0.51	0.50	0.85	0.77	0.69
Quick ratio	0.86	1.01	0.89	0.75	0.19	0.39	0.49	0.39	0.41	0.43	0.52	0.56	0.47	0.48	0.51	0.46	0.44	0.76	0.67	0.59
Cash ratio	0.39	0.53	0.39	0.26	0.05	0.14	0.23	0.17	0.15	0.16	0.18	0.24	0.15	0.16	0.21	0.13	0.13	0.32	0.17	0.17

Verisk Analytics Inc's liquidity ratios indicate its ability to meet short-term obligations and operational needs. The current ratio has been fluctuating over the quarters, varying from 0.40 in Q4 2022 to 1.18 in Q3 2023. Although the ratio improved over time, reaching 1.05 in Q4 2023, it remains relatively close to 1, indicating the firm may have some challenges in meeting immediate liabilities.

The quick ratio, which provides a more conservative measure by excluding inventory from current assets, follows a similar trend, ranging from 0.24 in Q4 2022 to 1.18 in Q3 2023. This ratio improved to 1.05 in Q4 2023, reflecting a better ability to cover short-term obligations with more liquid assets.

The cash ratio, representing the firm's ability to cover current liabilities with cash and cash equivalents, shows a similar pattern. Starting at 0.10 in Q4 2022 and reaching 0.71 in Q3 2023, the cash ratio declined slightly to 0.59 in Q4 2023. This suggests that Verisk Analytics has a moderate level of cash reserves compared to its current liabilities.

In conclusion, while Verisk Analytics Inc has shown some improvements in its liquidity ratios over the quarters, its current ratio remains close to 1, indicating a need for careful management of its short-term liquidity position. Further monitoring and evaluation of the components contributing to these ratios may be necessary to ensure sound liquidity management.

Additional liquidity measure

		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
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

Verisk Analytics Inc's cash conversion cycle has shown fluctuating trends over the past eight quarters. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

In Q1 2022, the cash conversion cycle was 63.26 days, indicating that it took the company approximately 63 days to convert its investments in inventory and resources into cash flows from sales. The cycle then decreased to 60.03 days in Q2 2022 before increasing again to 60.45 days in Q3 2022.

In Q4 2022, there was a slight increase to 48.87 days, showing an improvement in the cash conversion cycle. However, in Q1 2023, the cycle increased significantly to 66.64 days, the highest value in the dataset. This suggests that the company took longer to convert its investments into cash flows from sales during that period.

Throughout Q2 and Q3 2023, the cash conversion cycle continued to increase, reaching 63.76 days and 60.45 days, respectively. However, in Q4 2023, there was a decrease to 48.69 days, indicating an improvement in the company's ability to convert investments into cash flows within a shorter timeframe compared to the previous quarters.

Overall, Verisk Analytics Inc's cash conversion cycle has shown variability over the analyzed period, with fluctuations in the time taken to convert investments into cash flows from sales. Further analysis is needed to understand the underlying factors driving these changes and their impact on the company's financial performance.