Verisk Analytics Inc (VRSK)

Debt-to-equity ratio

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
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
Debt-to-equity ratio 9.14 7.37 9.64 41.41 1.34 1.18 1.14 0.88 0.96 0.99 0.98 1.14 1.16 1.30 1.44 0.00 1.17 0.00 0.00 0.00

December 31, 2023 calculation

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

The debt-to-equity ratio of Verisk Analytics Inc has exhibited significant fluctuations over the past eight quarters. In Q1 2023, the ratio stood at a considerably high level of 41.53, indicating that the company relied heavily on debt to finance its operations relative to shareholder equity. This spike in the ratio suggests a potential risk associated with the company's financial leverage during that period.

Subsequently, the ratio decreased in Q2 and Q3 2023, although it still remained relatively high at 9.68 and 7.46, respectively. This reduction may indicate efforts to decrease reliance on debt financing and improve the balance between debt and equity in the capital structure.

In contrast, during Q4 2023, the debt-to-equity ratio increased to 9.25, suggesting a return to higher debt levels compared to the previous two quarters. This shift may signal a strategic decision to take on more debt for potential growth opportunities, acquisitions, or other investment activities.

Looking further back, the ratios in Q4 2022, Q3 2022, Q2 2022, and Q1 2022 were comparatively lower, ranging from 1.37 to 2.14. These lower ratios indicate a healthier balance between debt and equity, highlighting potentially more conservative financial management practices during that period.

Overall, the trend in Verisk Analytics Inc's debt-to-equity ratio reflects fluctuations in the company's capital structure and financing decisions over the analyzed quarters. It is essential for investors and stakeholders to monitor these ratios to assess the company's financial health and risk exposure.