Verisk Analytics Inc (VRSK)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	1,490	1,027,200	1,262,400	875,400	897,500
Revenue	US$ in thousands	735,600	2,681,400	2,497,000	2,998,600	2,784,600
Pretax margin		0.20%	38.31%	50.56%	29.19%	32.23%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $1,490K ÷ $735,600K
= 0.20%

Verisk Analytics Inc's pretax margin has displayed fluctuating trends over the years. It stood at 32.23% as of December 31, 2020, showing a relatively strong performance. However, there was a decrease to 29.19% by December 31, 2021, indicating a slight decline in profitability.

The pretax margin then significantly increased to 50.56% by December 31, 2022, showcasing a remarkable improvement in operational efficiency and profitability. This sharp rise could be attributed to various factors such as cost management initiatives or revenue growth outpacing expenses.

Subsequently, there was a decline in the pretax margin to 38.31% by December 31, 2023, although it remained relatively healthy compared to the earlier years.

The pretax margin plummeted to a mere 0.20% by December 31, 2024, signaling a concerning trend with profitability almost negligible. This substantial decrease could indicate potential challenges faced by the company, such as increased costs, declining revenues, or inefficiencies in operations.

Overall, Verisk Analytics Inc's pretax margin has shown mixed performance over the years, demonstrating the importance of closely monitoring and analyzing profitability metrics to assess the company's financial health and operational effectiveness.