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.