Verisk Analytics Inc (VRSK)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 13.61 | 15.23 | 11.08 | 15.94 | 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 |
Verisk Analytics Inc's solvency ratios indicate a strong financial position with consistently low debt levels relative to assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 over the reporting periods, implying that the company's debt is minimal compared to its total assets, capital, and equity.
However, there is a notable increase in the Financial leverage ratio from March 31, 2023, reaching a peak of 61.26 before gradually decreasing in the subsequent periods. This sudden spike in leverage may raise concerns about the company's ability to meet its financial obligations, but the subsequent decline suggests management may have taken corrective actions to address this issue.
Overall, while Verisk Analytics Inc has maintained a solid solvency position with minimal debt levels in relation to its assets, capital, and equity, investors should monitor the financial leverage ratio closely for any signs of deteriorating solvency in the future.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Verisk Analytics Inc's interest coverage ratio has shown a generally positive trend over the last few years, indicating the company's ability to comfortably cover its interest expenses with its operating income. The interest coverage ratio has improved steadily from 5.79 as of March 31, 2020, to a peak of 10.27 as of September 30, 2024. This indicates that the company's operating income is more than sufficient to cover its interest expenses, providing a cushion against potential financial risk.
The consistent increase in the interest coverage ratio suggests that Verisk Analytics Inc has been effectively managing its debt and operating performance. A higher interest coverage ratio signifies a lower risk of default on outstanding debt obligations, as the company's earnings are more than adequate to meet its interest payments.
Overall, the firm's strong interest coverage ratio reflects a stable financial position and indicates a healthy ability to meet its financial obligations. Investors and creditors typically view a high interest coverage ratio positively, as it signifies a lower likelihood of financial distress.