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.