Verisk Analytics Inc (VRSK)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,353,200 | 1,142,700 | 1,401,200 | 913,500 | 1,035,700 |
| Interest expense | US$ in thousands | 124,600 | 115,500 | 138,800 | 127,000 | 138,200 |
| Interest coverage | 10.86 | 9.89 | 10.10 | 7.19 | 7.49 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,353,200K ÷ $124,600K
= 10.86
Verisk Analytics Inc's interest coverage ratio has displayed a relatively stable and healthy trend over the past five years. The interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt. Verisk Analytics Inc's interest coverage ratio was 7.49 as of December 31, 2020, indicating that the company generated 7.49 times the earnings needed to cover its interest expenses.
The ratio decreased slightly to 7.19 by December 31, 2021, but remained above a level of 7, which is generally considered acceptable. Subsequently, the interest coverage ratio saw an improvement, reaching 10.10 by December 31, 2022, and maintaining a strong position at 9.89 by December 31, 2023. Furthermore, the ratio continued to strengthen, reaching 10.86 by December 31, 2024, indicating that the company's ability to cover interest expenses with operating income has improved over the years.
Overall, Verisk Analytics Inc's interest coverage ratio reflects a stable financial position with a consistent ability to meet its interest obligations, suggesting sound financial management and adequate earnings generation to support its debt obligations.
Peer comparison
Dec 31, 2024