Verisk Analytics Inc (VRSK)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 68.67% | 67.31% | 66.98% | 64.72% | 64.31% |
| Operating profit margin | 43.00% | 42.21% | 56.33% | 33.37% | 37.28% |
| Pretax margin | 0.20% | 38.31% | 50.56% | 29.19% | 32.23% |
| Net profit margin | 0.20% | 22.92% | 38.22% | 22.22% | 25.59% |
Verisk Analytics Inc's profitability ratios have shown varying trends over the five-year period from 2020 to 2024.
1. Gross Profit Margin: The company's gross profit margin has steadily improved from 64.31% in 2020 to 68.67% in 2024. This indicates that Verisk Analytics has been able to increase its profitability on sales after accounting for the cost of goods sold.
2. Operating Profit Margin: Although there was a slight dip in 2021, the operating profit margin of Verisk Analytics significantly improved from 33.37% in 2021 to 43.00% in 2024. This suggests that the company has become more efficient in managing its operating expenses to generate profit.
3. Pretax Margin: The pretax margin of Verisk Analytics experienced significant fluctuations over the period. Despite reaching a high of 50.56% in 2022, it dropped to 0.20% in 2024. This could indicate challenges in managing the company's overall expenses and revenue generation.
4. Net Profit Margin: The net profit margin of Verisk Analytics followed a similar trend to the pretax margin, with fluctuations over the period. It increased to 38.22% in 2022 but fell to 0.20% in 2024. This sharp decline in 2024 could be a cause for concern regarding the company's ability to generate profits after accounting for all costs.
In summary, while Verisk Analytics Inc has shown improvement in its gross and operating profit margins over the years, the fluctuations in pretax and net profit margins highlight a need for the company to focus on managing expenses and sustaining profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.42% | 25.92% | 20.21% | 12.81% | 13.73% |
| Return on assets (ROA) | 0.03% | 14.08% | 13.71% | 8.53% | 9.43% |
| Return on total capital | 1,351.85% | 368.61% | 80.10% | 32.43% | 38.38% |
| Return on equity (ROE) | 1.49% | 198.26% | 54.55% | 23.66% | 26.41% |
Verisk Analytics Inc's profitability ratios demonstrate fluctuations over the years.
- Operating return on assets (Operating ROA): This ratio indicates how efficiently the company is generating profits from its assets. Verisk Analytics Inc's Operating ROA decreased from 13.73% in 2020 to 12.81% in 2021, before experiencing a significant increase to 20.21% in 2022 and further to 25.92% in 2023. However, in 2024, there was a decline to 7.42%.
- Return on assets (ROA): This ratio shows the company's ability to generate profits from its total assets. Verisk Analytics Inc's ROA decreased from 9.43% in 2020 to 8.53% in 2021, improved to 13.71% in 2022 and further to 14.08% in 2023. However, there was a sharp decline to 0.03% in 2024.
- Return on total capital: This ratio measures the overall profitability of the company's total capital employed. Verisk Analytics Inc's Return on Total Capital was high, starting at 38.38% in 2020, declining to 32.43% in 2021, and then significantly increasing to 80.10% in 2022 and further to 368.61% in 2023. However, there was an exceptional increase to 1,351.85% in 2024.
- Return on equity (ROE): This ratio shows how effectively the company is generating profits on shareholders' equity. Verisk Analytics Inc's ROE followed a similar trend to the other ratios, starting at 26.41% in 2020, decreasing to 23.66% in 2021, then increasing to 54.55% in 2022, further to 198.26% in 2023, and finally decreasing to 1.49% in 2024.
Overall, while there were fluctuating trends in profitability ratios, Verisk Analytics Inc demonstrated strong profitability in certain years, particularly in 2023 and 2024, as indicated by the remarkable Return on Total Capital and Return on Equity percentages.