Verisk Analytics Inc (VRSK)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,366,100 | 6,961,100 | 7,808,100 | 7,561,800 | 7,055,200 |
| Total stockholders’ equity | US$ in thousands | 310,000 | 1,749,300 | 2,816,500 | 2,698,200 | 2,260,800 |
| Financial leverage ratio | 14.08 | 3.98 | 2.77 | 2.80 | 3.12 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,366,100K ÷ $310,000K
= 14.08
The financial leverage ratio of Verisk Analytics Inc has shown fluctuations over the past five years, varying from 14.08 in 2023 to 2.77 in 2021. The ratio reached its peak in 2023, indicating a significant increase in financial leverage compared to the previous years. A higher financial leverage ratio suggests that the company is heavily reliant on debt to finance its operations and growth, which can increase financial risk and interest expenses. On the contrary, a lower ratio indicates a lower dependency on debt financing. Verisk Analytics Inc should closely monitor its financial leverage ratio and ensure a balanced capital structure to maintain financial stability and flexibility.
Peer comparison
Dec 31, 2023