Verisk Analytics Inc (VRSK)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	958,000	921,500	888,900	777,700	752,500	794,500	796,600	797,400	1,108,800	1,035,000	1,047,200	1,003,500	666,300	700,500	684,600	709,600	712,700	668,700	515,800	487,200
Total stockholders’ equity	US$ in thousands	100,100	299,600	430,300	282,200	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
ROE		957.04%	307.58%	206.58%	275.58%	242.74%	206.63%	270.95%	1,165.79%	63.39%	52.04%	44.53%	37.75%	23.66%	25.81%	24.86%	25.74%	26.41%	27.62%	23.70%	23.42%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $958,000K ÷ $100,100K
= 957.04%

Verisk Analytics Inc's return on equity (ROE) has displayed fluctuations over the reported periods. The ROE increased steadily from March 2020 to September 2022, indicating improving efficiency in generating profits from shareholders' equity. Notably, the ROE experienced a significant spike in March 2023, reaching an exceptionally high level of 1,165.79%. This extraordinary increase may be attributed to various factors, such as changes in the capital structure or one-time gains.

Subsequently, Verisk Analytics Inc's ROE demonstrated a sharp decline in June 2023, raising concerns about the sustainability of such exceptional performance. The ROE continued to fluctuate in the following periods but generally remained at elevated levels compared to the earlier years, suggesting the company's ability to generate significant returns on shareholders' equity.

Overall, Verisk Analytics Inc's ROE performance indicates periods of exceptional profitability, albeit accompanied by significant fluctuations. Investors and stakeholders may want to further investigate the reasons behind the extreme variations in ROE to assess the company's financial health and operational efficiency accurately.