Verisk Analytics Inc (VRSK)

Quick ratio

		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	US$ in thousands	302,700	416,800	308,700	231,900	112,500	276,800	480,700	397,900	111,900	302,100	276,300	390,900	218,800	221,800	309,400	204,400	184,600	311,800	153,300	179,500
Short-term investments	US$ in thousands	1,200	1,300	2,500	3,400	4,000	3,800	3,900	—	168,400	—	—	—	—	—	—	—	3,600	3,400	—	—
Receivables	US$ in thousands	357,700	370,000	402,100	433,300	334,300	498,800	553,600	528,300	483,000	489,000	498,200	519,500	457,800	459,400	454,500	523,300	467,500	428,800	468,000	444,600
Total current liabilities	US$ in thousands	771,400	784,100	800,800	890,100	2,319,200	1,980,300	2,112,500	2,404,600	1,848,000	1,843,100	1,493,900	1,622,900	1,430,800	1,422,900	1,490,300	1,597,900	1,491,800	973,600	920,800	1,058,400
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($302,700K + $1,200K + $357,700K) ÷ $771,400K
= 0.86

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio of 1.0 or higher generally indicates that a company has enough liquid assets to cover its current liabilities.

Verisk Analytics Inc's quick ratio has shown variability over the past eight quarters. In Q4 2023, the quick ratio stands at 1.05, indicating that the company has $1.05 in liquid assets available to cover each $1 of current liabilities. This suggests a relatively healthy liquidity position for the company in the most recent quarter.

Looking at the trend over the quarters, the quick ratio has fluctuated between 0.24 and 1.18. The significant increase from 0.24 in Q4 2022 to 1.05 in Q4 2023 demonstrates a substantial improvement in the company's liquidity position.

It is important to note that a quick ratio of less than 1.0 could suggest potential liquidity issues as the company may not have enough liquid assets to cover its short-term liabilities. However, Verisk Analytics Inc has consistently maintained a quick ratio above 1.0 in recent quarters, indicating a generally healthy liquidity position and the ability to meet its short-term obligations.