Verisk Analytics Inc (VRSK)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,264,700 | 4,366,100 | 6,961,100 | 7,808,100 | 7,561,800 |
| Total stockholders’ equity | US$ in thousands | 100,100 | 310,000 | 1,749,300 | 2,816,500 | 2,698,200 |
| Financial leverage ratio | 42.60 | 14.08 | 3.98 | 2.77 | 2.80 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,264,700K ÷ $100,100K
= 42.60
The financial leverage ratio of Verisk Analytics Inc has shown a fluctuating trend over the past five years. The ratio was relatively stable from 2020 to 2021, with values of 2.80 and 2.77 respectively. However, there was a significant increase in the financial leverage ratio in 2022, reaching 3.98. This increase suggests that the company may have taken on more debt or increased its financial leverage during that period.
The trend accelerated dramatically in 2023, with the financial leverage ratio jumping to 14.08, indicating a substantial increase in debt relative to equity. By 2024, the ratio surged further to 42.60, signifying a significant level of financial leverage and potential financial risk.
Overall, the increasing trend in Verisk Analytics Inc's financial leverage ratio over the past few years suggests a growing reliance on debt to finance its operations, which may raise concerns about the company's financial stability and ability to service its debt obligations in the long term. Investors and stakeholders should closely monitor these trends and assess the company's overall financial health and risk profile.
Peer comparison
Dec 31, 2024