Verisk Analytics Inc (VRSK)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 1,490 614,600 954,300 666,300 712,700
Total assets US$ in thousands 4,264,700 4,366,100 6,961,100 7,808,100 7,561,800
ROA 0.03% 14.08% 13.71% 8.53% 9.43%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $1,490K ÷ $4,264,700K
= 0.03%

Verisk Analytics Inc's return on assets (ROA) has shown fluctuations over the past five years.

- As of December 31, 2020, the ROA stood at 9.43%, indicating that the company generated $9.43 in net income for every $100 of assets.
- By December 31, 2021, the ROA decreased slightly to 8.53%, suggesting a slight decline in the company's efficiency in utilizing its assets to generate profits.
- However, in the following years, there was a significant improvement in the ROA. By December 31, 2022, the ROA jumped to 13.71%, indicating a more efficient use of assets to generate higher returns.
- This positive trend continued in the subsequent year, with the ROA further increasing to 14.08% as of December 31, 2023, reflecting continued improvement in asset utilization efficiency.
- Strikingly, by December 31, 2024, the ROA dropped drastically to 0.03%, which may raise concerns about the company's ability to generate profits relative to its asset base.

Overall, Verisk Analytics Inc's ROA has exhibited fluctuations over the years, with notable improvements followed by a sharp decline in the most recent year, highlighting the importance of closely monitoring the company's asset utilization efficiency and profitability.