Verisk Analytics Inc (VRSK)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,253,200 | 1,214,400 | 1,178,200 | 1,143,500 | 1,131,100 | 1,141,000 | 1,136,400 | 1,115,600 | 1,067,600 | 981,300 | 993,600 | 997,800 | 1,001,600 | 1,058,500 | 1,044,900 | 1,036,500 | 1,035,800 | 989,700 | 784,600 | 743,400 |
| Interest expense (ttm) | US$ in thousands | 124,600 | 118,200 | 115,500 | 118,000 | 115,500 | 128,600 | 133,700 | 134,000 | 138,900 | 127,900 | 123,300 | 122,900 | 127,000 | 132,100 | 137,500 | 140,200 | 138,300 | 136,100 | 132,100 | 128,400 |
| Interest coverage | 10.06 | 10.27 | 10.20 | 9.69 | 9.79 | 8.87 | 8.50 | 8.33 | 7.69 | 7.67 | 8.06 | 8.12 | 7.89 | 8.01 | 7.60 | 7.39 | 7.49 | 7.27 | 5.94 | 5.79 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,253,200K ÷ $124,600K
= 10.06
Verisk Analytics Inc's interest coverage ratio has shown a consistent improvement over the last few years, reflecting the company's ability to comfortably meet its interest payment obligations. The interest coverage ratio has increased from 5.79 as of March 31, 2020, to 10.06 as of December 31, 2024. This indicates that the company's operating income is more than sufficient to cover its interest expenses.
The trend of increasing interest coverage ratio is a positive sign for Verisk Analytics Inc as it demonstrates the company's improving financial health and ability to manage its debt obligations effectively. The ratio exceeding 1 signifies that the company is generating enough operating income to pay off its interest expenses, with higher values indicating a greater cushion for covering interest costs.
Overall, the consistently rising interest coverage ratio suggests that Verisk Analytics Inc's financial position is strengthening, providing investors and creditors with confidence in the company's ability to manage its debt and sustain its operations in the long run.
Peer comparison
Dec 31, 2024