Verisk Analytics Inc (VRSK)

Operating return on assets (Operating ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 316,300 1,131,700 1,406,500 1,000,500 1,038,100
Total assets US$ in thousands 4,264,700 4,366,100 6,961,100 7,808,100 7,561,800
Operating ROA 7.42% 25.92% 20.21% 12.81% 13.73%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $316,300K ÷ $4,264,700K
= 7.42%

Verisk Analytics Inc's operating return on assets (operating ROA) has fluctuated over the past five years. The trend shows an initial increase from 13.73% as of December 31, 2020, to a peak of 25.92% as of December 31, 2023, indicating improved operational efficiency and profitability during that period. However, there was a significant decline to 7.42% by December 31, 2024.

The decrease in operating ROA in the last year could be concerning, suggesting a potential deterioration in the company's ability to generate earnings from its assets. It would be important for stakeholders to further investigate the factors contributing to this decline and assess the company's operational performance and asset utilization efficiency.

Overall, Verisk Analytics Inc's operating ROA performance over the past five years demonstrates variability, requiring careful monitoring and analysis to understand the underlying drivers affecting the company's profitability and operational effectiveness.