Verisk Analytics Inc (VRSK)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	614,600	953,900	666,200	712,700	449,900
Total stockholders’ equity	US$ in thousands	310,000	1,749,300	2,816,500	2,698,200	2,260,800
ROE		198.26%	54.53%	23.65%	26.41%	19.90%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $614,600K ÷ $310,000K
= 198.26%

Verisk Analytics Inc has demonstrated a robust trend in return on equity (ROE) over the past five years. The ROE has shown a significant increase, reaching 198.26% at the end of 2023, compared to lower levels in the previous years, such as 54.53% in 2022, 23.65% in 2021, 26.41% in 2020, and 19.90% in 2019. This upward trend indicates that the company has been able to generate impressive returns for its shareholders based on the equity invested in the business. The substantial increase in ROE from 2019 to 2023 suggests improvements in the company's operational efficiency, effective capital utilization, and potentially strong profitability. It is crucial to further examine the factors contributing to this remarkable performance to assess the sustainability of this trend and the company's overall financial health.