Verisk Analytics Inc (VRSK)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	873,400	723,800	716,300	694,400	1,174,200	1,224,000	1,237,700	1,236,600	845,600	906,800	890,900	877,900	877,300	853,600	652,500	615,000	568,400	575,900	729,800	727,500
Revenue (ttm)	US$ in thousands	2,577,100	2,105,700	2,168,700	2,240,100	2,359,000	2,906,100	2,924,100	2,925,600	2,872,300	2,815,400	2,753,200	2,681,700	2,665,800	2,626,400	2,581,000	2,558,500	2,476,400	2,316,300	2,293,500	2,272,700
Pretax margin		33.89%	34.37%	33.03%	31.00%	49.78%	42.12%	42.33%	42.27%	29.44%	32.21%	32.36%	32.74%	32.91%	32.50%	25.28%	24.04%	22.95%	24.86%	31.82%	32.01%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $873,400K ÷ $2,577,100K
= 33.89%

Verisk Analytics Inc's pretax margin showed fluctuating performance over the past eight quarters. The company experienced a peak pretax margin of 50.56% in Q4 2022, followed by a significant decrease to 38.31% in Q4 2023. This trend suggests a decrease in profitability relative to revenue before accounting for taxes and other expenses.

Although there were variations in pretax margin from quarter to quarter, the company maintained relatively consistent levels in the range of 41% to 43% throughout most of the quarters in 2022 and 2023. Q3 2023 recorded the highest pretax margin at 42.47%, indicating improved profitability during that period.

It is essential for Verisk Analytics Inc to closely monitor and manage its pretax margin to ensure sustainable and optimal levels of profitability. Further analysis of the factors influencing the fluctuations in pretax margin would be beneficial in identifying areas for improvement and maintaining financial stability.