Verisk Analytics Inc (VRSK)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 42.60 | 14.08 | 3.98 | 2.77 | 2.80 |
Verisk Analytics Inc has consistently maintained a strong solvency position as evidenced by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all recording values of 0.00 across the years 2020 to 2024. This indicates that the company's level of debt relative to its assets, capital, and equity is negligible or non-existent.
However, the financial leverage ratio tells a different story. The ratio has been increasing significantly over the years, from 2.80 in 2020 to 42.60 in 2024. This upward trend suggests that Verisk Analytics Inc has been relying more on debt to finance its operations and business activities, leading to a substantial increase in financial leverage. This could potentially pose a risk to the company's financial stability if not managed effectively.
In conclusion, while Verisk Analytics Inc's traditional solvency ratios reflect a strong financial position, the escalating financial leverage ratio indicates a growing dependency on debt which may require closer monitoring and management to ensure long-term financial health and sustainability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 10.86 | 9.89 | 10.10 | 7.19 | 7.49 |
Verisk Analytics Inc's interest coverage ratio has shown a relatively stable trend over the past five years. The ratio indicates the company's ability to meet its interest obligations on its debt.
In December 2020, the interest coverage ratio was 7.49, indicating that the company generated 7.49 times the earnings needed to cover its interest expenses. Despite a slight decrease to 7.19 in December 2021, the ratio remained at a healthy level.
The interest coverage ratio improved significantly in the following years, reaching 10.10 in December 2022, 9.89 in December 2023, and 10.86 in December 2024. These higher ratios suggest that Verisk Analytics Inc's earnings are comfortably covering its interest expenses, indicating financial strength and stability.
Overall, the consistently high and improving interest coverage ratios reflect positively on the company's financial health and ability to manage its debt obligations effectively.