Verisk Analytics Inc (VRSK)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 65.99% | 65.05% | 63.17% | 62.44% | 60.57% |
| Operating profit margin | 43.91% | 59.62% | 31.74% | 36.14% | 28.13% |
| Pretax margin | 33.89% | 49.77% | 29.44% | 33.15% | 22.95% |
| Net profit margin | 23.85% | 40.43% | 23.20% | 26.93% | 18.16% |
Verisk Analytics Inc has demonstrated consistent improvement in its profitability ratios over the past five years. The gross profit margin has shown a clear upward trend, increasing from 62.53% in 2019 to 67.31% in 2023. This indicates that the company has been effectively managing its cost of goods sold and generating more revenue from its core business activities.
Similarly, the operating profit margin has also steadily increased from 26.73% in 2019 to 42.21% in 2023, showcasing the company's ability to control its operating expenses and improve operational efficiency.
The pretax margin has shown volatility but generally an upward trend, reaching 38.31% in 2023. This indicates that Verisk Analytics Inc has been successful in managing its non-operating expenses and generating higher profits before taxes.
Finally, the net profit margin, which reflects the company's bottom line profitability, has also improved significantly over the years. From 17.26% in 2019, it reached 22.92% in 2023, indicating that the company has effectively managed its overall expenses and taxes, resulting in higher net profits for its shareholders.
Overall, Verisk Analytics Inc's profitability ratios reflect a positive trend, with consistent improvements in its gross profit margin, operating profit margin, pretax margin, and net profit margin over the past five years. This indicates strong financial performance and effective management of the company's operations.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 25.92% | 20.21% | 11.67% | 12.65% | 9.88% |
| Return on assets (ROA) | 14.08% | 13.70% | 8.53% | 9.43% | 6.38% |
| Return on total capital | 31.46% | 32.09% | 17.66% | 17.39% | 14.16% |
| Return on equity (ROE) | 198.26% | 54.53% | 23.65% | 26.41% | 19.90% |
Verisk Analytics Inc has exhibited a consistent improvement in its profitability ratios over the past five years. The Operating return on assets (Operating ROA) has shown a positive trend, increasing from 9.88% in 2019 to 25.92% in 2023, indicating the company's ability to generate operating profits from its assets more efficiently.
Similarly, the Return on assets (ROA) has also shown an upward trajectory, from 6.38% in 2019 to 14.08% in 2023, reflecting an improvement in the company's overall profitability relative to its total assets.
The Return on total capital has experienced significant growth, reaching 35.63% in 2023 compared to 12.88% in 2019, showcasing the company's effectiveness in generating returns from both debt and equity capital.
The Return on equity (ROE) has followed a remarkable upward trend, with a substantial increase to 198.26% in 2023 from 19.90% in 2019, indicating that Verisk Analytics Inc is generating significant profits in relation to shareholders' equity.
Overall, the profitability ratios of Verisk Analytics Inc demonstrate a positive performance and financial health, showcasing the company's efficiency in utilizing its assets and capital to generate profits for its shareholders.