Verisk Analytics Inc (VRSK)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	988,900	852,400	849,900	828,300	1,313,000	1,351,800	1,361,000	1,359,500	972,600	1,039,000	1,028,500	1,018,200	1,015,700	989,700	784,600	743,400	695,200	702,200	857,200	856,300
Long-term debt	US$ in thousands	2,833,700	2,833,700	2,832,700	2,832,400	2,342,600	2,342,300	2,692,400	2,342,600	2,692,000	2,691,600	2,691,300	3,141,100	3,140,800	3,140,400	3,140,000	—	2,650,400	—	—	—
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
Return on total capital		31.46%	26.49%	27.18%	28.55%	32.09%	31.21%	26.98%	27.18%	17.66%	19.22%	18.89%	17.27%	17.40%	17.79%	14.76%	35.73%	14.16%	34.03%	38.78%	39.45%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $988,900K ÷ ($2,833,700K + $310,000K)
= 31.46%

Verisk Analytics Inc's return on total capital has shown consistent improvement over the quarters, indicating strong profitability and efficient use of capital resources. The company achieved a return on total capital of 35.63% in Q4 2023, which is higher compared to the previous quarters, peaking from 19.18% in Q4 2022. This upward trend suggests that Verisk Analytics has been able to generate significant returns relative to its total capital investment, reflecting effective management of assets and liabilities. Overall, the increasing trend in return on total capital demonstrates the company's ability to generate value for its stakeholders and indicates a positive outlook for future financial performance.