Verisk Analytics Inc (VRSK)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 100,100 | 310,000 | 1,749,300 | 2,816,500 | 2,698,200 |
| ROE | 1.49% | 198.26% | 54.55% | 23.66% | 26.41% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,490K ÷ $100,100K
= 1.49%
Verisk Analytics Inc's return on equity (ROE) has displayed significant fluctuations over the years, based on the provided data. Starting at 26.41% on December 31, 2020, the ROE decreased to 23.66% by the end of 2021. The year 2022 saw a substantial increase to 54.55%, indicating improved efficiency in generating profit from shareholders' equity.
Interestingly, the ROE surged to an exceptionally high level of 198.26% by December 31, 2023, representing a remarkable performance in utilizing shareholders' investments to generate profits. However, this exceptional performance was followed by a sharp decline, with the ROE dropping to 1.49% by the end of 2024.
It is important to note that such drastic fluctuations in ROE can be influenced by various factors, including changes in net income, shareholders' equity, or financial leverage. Investors and analysts should closely monitor these changes to understand the company's profitability and efficiency in utilizing shareholders' equity effectively.
Peer comparison
Dec 31, 2024