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.