F

Verisk Analytics, Inc. — Earnings Quality Grade F

VRSK · Industrials

Major red flags

Revenue
$3.1B
2025
Net Income
$908M
2025
Gross Margin
69.9%
Free Cash Flow
$1.2B
01

Screening Summary

14
Passed
0
Watch
2
Failed
-3.04
M-Score
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 49 days, change -4 days YoY

A2AR vs Revenue Growth

AR growth -2.0% vs revenue growth 6.6%

A3Revenue vs CFFO

Revenue 6.6%, CFFO 25.5%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

CapEx growth 9.0% vs revenue 6.6%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 21.3%, excellent (<30%)

B4Gross Margin

Gross margin 69.9%, change +1.1pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.58. Profits backed by cash

C2Free Cash Flow

FCF $1.2B, FCF/NI = 1.31

C3Accruals Ratio

Accruals ratio = -8.5%. Low accruals

C4Cash vs Debt

Cash $2.2B covers only 44% of debt $4.9B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $2.2B = 720% of equity. Over 50%

D2Leverage

Debt/EBITDA = 2.9x. Healthy

D3Soft Asset Growth

Insufficient data

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 5% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -3.04 (< -2.22). Unlikely manipulator

04

Beneish M-Score

Manipulation Probability-3.04
-4.0 Clean-2.22 Grey-1.78 Danger0
0.919
DSRI
AR growing faster than revenue?
0.984
GMI
Gross margin declining?
0.719
AQI
Asset quality deteriorating?
1.066
SGI
Revenue growth rate
0.919
DEPI
Depreciation slowing?
1.051
SGAI
SG&A ratio changing?
-0.0852
TATA
Accruals level
1.01
LVGI
Leverage increasing?
05

Altman Z-Score

6.11
Safe Zone
0 Distress1.102.605.0+ Safe
0.0751
Liquidity
1.2607
Cumulative profit
0.2166
Operating efficiency
0.0525
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08

Verisk Analytics, Inc. (VRSK) Earnings Quality Grade F — EarningsGrade