Verisk Analytics Inc (VRSK)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 988,900 | 1,313,000 | 972,600 | 1,015,600 | 695,200 |
| Long-term debt | US$ in thousands | 2,833,700 | 2,342,600 | 2,692,000 | 3,140,800 | 2,650,400 |
| Total stockholders’ equity | US$ in thousands | 310,000 | 1,749,300 | 2,816,500 | 2,698,200 | 2,260,800 |
| Return on total capital | 31.46% | 32.09% | 17.66% | 17.39% | 14.16% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $988,900K ÷ ($2,833,700K + $310,000K)
= 31.46%
Verisk Analytics Inc has shown a strong performance in terms of return on total capital over the past five years, with a significant increase from 12.88% in 2019 to 35.63% in 2023. This indicates that the company has been able to generate higher returns relative to its total capital employed in the business. The consistent improvement in this ratio demonstrates the efficiency and effectiveness of the company in utilizing its capital resources to generate higher profits. Overall, the increasing trend in return on total capital reflects positively on Verisk Analytics Inc's ability to create value for its stakeholders and indicates a potentially strong financial position.
Peer comparison
Dec 31, 2023