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.