Verisk Analytics Inc (VRSK)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	1,131,700	1,406,500	911,400	956,300	696,900
Total assets	US$ in thousands	4,366,100	6,961,100	7,808,100	7,561,800	7,055,200
Operating ROA		25.92%	20.21%	11.67%	12.65%	9.88%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $1,131,700K ÷ $4,366,100K
= 25.92%

Verisk Analytics Inc's operating return on assets (ROA) has shown positive trends over the past five years. The operating ROA increased from 9.88% in 2019 to 25.92% in 2023, indicating improving efficiency in generating profits from its operational assets. This upward trend suggests that the company has been able to generate more earnings relative to its asset base over the years.

The significant improvement in operating ROA from 2022 to 2023, from 15.12% to 25.92%, demonstrates a notable increase in profitability and efficiency in asset utilization within a year. This improvement could be attributed to enhanced operational effectiveness, cost management, revenue growth, or a combination of these factors.

Verisk Analytics Inc's consistent and relatively high operating ROA figures indicate that the company is effectively utilizing its assets to generate operating income. This could reflect strong management of resources and a sound operational strategy that focuses on maximizing profitability.

Overall, the increasing trend in operating ROA for Verisk Analytics Inc demonstrates a positive outlook for the company's financial performance and efficiency in utilizing its assets to drive profitability.