Verisk Analytics Inc (VRSK)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	614,600	501,700	503,700	504,500	953,900	1,034,700	1,047,000	1,003,300	666,200	700,500	684,600	709,600	712,700	668,700	515,800	487,200	449,900	463,900	597,000	600,100
Total stockholders’ equity	US$ in thousands	310,000	384,500	294,000	68,400	1,749,300	1,989,000	2,351,900	2,658,600	2,816,500	2,714,400	2,753,500	2,756,300	2,698,200	2,421,300	2,176,100	2,080,500	2,260,800	2,063,700	2,210,700	2,170,500
ROE		198.26%	130.48%	171.33%	737.57%	54.53%	52.02%	44.52%	37.74%	23.65%	25.81%	24.86%	25.74%	26.41%	27.62%	23.70%	23.42%	19.90%	22.48%	27.01%	27.65%

December 31, 2023 calculation

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

Verisk Analytics Inc's return on equity (ROE) has shown significant fluctuations over the past eight quarters. In Q1 2023, the ROE spiked to an extraordinary 737.57%, which indicates that the company generated substantial profits relative to its shareholder equity during that period. This exceptional performance contrasts with a more modest ROE in the preceding quarters, such as Q4 2022 and Q3 2022, where the figures were 54.53% and 52.02%, respectively.

Overall, Verisk Analytics Inc's ROE has been relatively high across the board, exceeding 100% in six out of the eight quarters analyzed. This indicates that the company has been effectively utilizing its equity to generate profits for its shareholders. However, the significant fluctuations in ROE suggest that there may be variability in the company's profitability and efficiency in capital utilization over time. Further analysis would be required to understand the specific factors driving these fluctuations and the sustainability of the company's high ROE levels.