Verisk Analytics Inc (VRSK)

Financial leverage 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
Total assets	US$ in thousands	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	7,055,200	6,289,100	6,234,000	6,341,100
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
Financial leverage ratio		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	3.12	3.05	2.82	2.92

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,366,100K ÷ $310,000K
= 14.08

Verisk Analytics Inc's financial leverage ratio has displayed significant fluctuations over the past eight quarters. The ratio ranged from a low of 3.07 in Q1 2022 to a high of 61.26 in Q1 2023. Such variability suggests fluctuations in the company's utilization of debt to finance its operations and investments.

A high financial leverage ratio, as seen in Q1 2023, indicates that Verisk Analytics has a high level of debt relative to its equity, which can potentially magnify returns but also increases financial risk. This could be due to large borrowings for acquisitions or investments during this period. On the other hand, the lower ratios in Q2 and Q3 2022 suggest a more conservative capital structure with lower debt levels relative to equity.

Investors and creditors should closely monitor the trend in Verisk Analytics Inc's financial leverage ratio to assess the company's capital structure and its ability to manage debt effectively. Fluctuations in this ratio could signal changes in the company's risk profile and financial stability.