Verisk Analytics Inc (VRSK)

Debt-to-equity ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
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
Debt-to-equity ratio 9.14 1.34 0.96 1.16 1.17

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,833,700K ÷ $310,000K
= 9.14

Verisk Analytics Inc's debt-to-equity ratio has displayed a significant upward trend over the period from 2019 to 2023. The ratio increased from 1.39 in 2019 to 9.25 in 2023. This indicates that the company's level of debt relative to its equity has substantially escalated over the years, signifying a higher proportion of debt funding in its capital structure.

The notable rise in the debt-to-equity ratio suggests that Verisk Analytics Inc has been relying more on debt to finance its operations and growth initiatives. This could potentially expose the company to higher financial risk, as an elevated debt level may lead to increased interest payments and financial obligations in the long term.

It is essential for stakeholders to closely monitor this trend in the debt-to-equity ratio to assess the company's financial health and leverage position. High levels of debt relative to equity may indicate a need for the company to effectively manage its debt levels and ensure its ability to meet financial obligations in the future. Additionally, investors and creditors may view a steadily increasing debt-to-equity ratio as a signal of potential financial distress and heightened risk within the company.