Verisk Analytics Inc (VRSK)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,353,200 | 1,142,700 | 1,401,200 | 913,500 | 1,035,700 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 100,100 | 310,000 | 1,749,300 | 2,816,500 | 2,698,200 |
| Return on total capital | 1,351.85% | 368.61% | 80.10% | 32.43% | 38.38% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,353,200K ÷ ($—K + $100,100K)
= 1,351.85%
Looking at the trend in Verisk Analytics Inc's return on total capital over the years, we observe a significant fluctuation and overall upward trajectory.
In 2020, the return on total capital stood at 38.38%, indicating a healthy performance in utilizing its capital effectively to generate profits. This figure decreased slightly to 32.43% by the end of 2021 but still remained at a respectable level.
The year 2022 saw a substantial increase in the return on total capital to 80.10%, suggesting improved efficiency in generating profits relative to the total capital employed. This positive trend continued into 2023, with a remarkable return of 368.61%, indicating a significant leap in capital efficiency and profitability.
By the end of 2024, Verisk Analytics Inc achieved an exceptionally high return on total capital of 1,351.85%, reflecting a substantial increase in profitability relative to the total capital invested. This exceptional performance in capital utilization suggests strong operational efficiency and effective allocation of resources.
Overall, the trend in Verisk Analytics Inc's return on total capital demonstrates a positive trajectory, with notable fluctuations but ultimately showcasing an increasingly efficient use of capital to generate profits over the years.
Peer comparison
Dec 31, 2024