Verisk Analytics Inc (VRSK)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	1,362,100	4,563,200	4,767,900	4,498,600	4,366,100	4,363,900	4,315,700	4,190,000	6,961,100	6,974,600	7,508,900	8,159,000	7,808,100	7,662,500	7,713,600	7,810,500	7,561,800	7,219,600	7,007,900	6,928,100
Total stockholders’ equity	US$ in thousands	100,100	299,600	430,300	282,200	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
Financial leverage ratio		13.61	15.23	11.08	15.94	14.08	11.35	14.68	61.26	3.98	3.51	3.19	3.07	2.77	2.82	2.80	2.83	2.80	2.98	3.22	3.33

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,362,100K ÷ $100,100K
= 13.61

The financial leverage ratio of Verisk Analytics Inc has shown some fluctuations over the past few years. The ratio decreased steadily from March 2020 to December 2021, indicating a reduction in the company's reliance on debt to finance its operations. However, starting from March 2022, the ratio began to increase significantly, reaching a peak of 61.26 as of March 31, 2023. This sharp increase suggests a substantial rise in the company's debt obligations relative to its equity.

The ratio then decreased substantially in the following quarters, indicating a potential effort to reduce debt levels or improve equity positions. However, the ratio remained elevated compared to historical levels, indicating a continued reliance on debt financing. Overall, careful monitoring of the financial leverage ratio is advisable to assess the company's capital structure and risk profile effectively.