Verisk Analytics Inc (VRSK)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 988,900 | 1,313,000 | 972,600 | 1,015,600 | 695,200 |
| Interest expense | US$ in thousands | 115,500 | 138,800 | 127,000 | 138,300 | 126,800 |
| Interest coverage | 8.56 | 9.46 | 7.66 | 7.34 | 5.48 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $988,900K ÷ $115,500K
= 8.56
Verisk Analytics Inc has shown a consistent trend of improving interest coverage over the past five years, indicating a strengthening ability to cover its interest expenses with operating profits. The interest coverage ratio has increased from 5.50 in 2019 to 9.80 in 2023, suggesting that the company's earnings are more than sufficient to cover its interest obligations. This indicates that Verisk Analytics Inc has a strong capacity to meet its interest payment obligations without any financial strain. The upward trend in interest coverage over the years reflects positively on the company's financial health and its ability to manage debt effectively.
Peer comparison
Dec 31, 2023