IQVIA Holdings Inc (IQV)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 82.46 | 79.06 | 66.00 |
| Receivables turnover | 4.81 | 4.23 | 4.80 | 5.28 | 4.54 |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | — | 20.55 |
Inventory Turnover Ratio:
- The inventory turnover ratio measures how efficiently a company is managing its inventory.
- IQVIA Holdings Inc's inventory turnover has been increasing steadily over the years, from 66.00 in 2020 to 82.46 in 2022.
- A higher inventory turnover ratio indicates that the company is selling its inventory faster, which is a positive sign.
Receivables Turnover Ratio:
- The receivables turnover ratio reflects how efficiently a company is collecting its accounts receivables.
- IQVIA Holdings Inc's receivables turnover ratio fluctuated slightly over the years, ranging from 4.23 in 2023 to 5.28 in 2021.
- The company generally appears to be collecting its receivables at a reasonable pace.
Payables Turnover Ratio:
- The payables turnover ratio assesses how well a company is managing its accounts payables.
- The data provided does not include information on IQVIA Holdings Inc's payables turnover ratio for the years analyzed.
Working Capital Turnover Ratio:
- The working capital turnover ratio indicates how effectively a company is utilizing its working capital to generate revenue.
- IQVIA Holdings Inc had a working capital turnover ratio of 20.55 in 2020, showcasing the company's ability to generate sales using its working capital.
- Unfortunately, data for the subsequent years is not available for further analysis.
Overall, based on the available information, IQVIA Holdings Inc demonstrates good efficiency in managing its inventory and accounts receivables, which are crucial aspects of its operations.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 4.43 | 4.62 | 5.53 |
| Days of sales outstanding (DSO) | days | 75.92 | 86.25 | 76.03 | 69.13 | 80.44 |
| Number of days of payables | days | — | — | — | — | — |
The activity ratios of IQVIA Holdings Inc provide valuable insights into the efficiency of its operational processes.
1. Days of Inventory on Hand (DOH):
- The DOH ratio decreased from 5.53 days in December 2020 to 4.43 days in December 2022, indicating that the company has been able to manage its inventory more effectively over time.
- However, there is missing data for 2023 and 2024, which makes it challenging to assess the trend accurately.
2. Days of Sales Outstanding (DSO):
- The DSO ratio improved from 80.44 days in December 2020 to 69.13 days in December 2021 before slightly deteriorating to 76.03 days in December 2022.
- In 2023, the DSO ratio increased to 86.25 days but then decreased to 75.92 days by the end of 2024, indicating a somewhat fluctuating trend in collecting receivables over the years.
3. Number of Days of Payables:
- Data is not available for the number of days of payables for any of the years, which makes it difficult to assess the company's payment practices and relationship with suppliers.
Overall, IQVIA Holdings Inc has shown improvements in managing its inventory and collecting receivables efficiently based on the available data. However, the lack of information on payables hinders a complete analysis of the company's operational cycle.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 28.79 | 27.36 | 26.32 | 27.10 | 22.69 |
| Total asset turnover | 0.57 | 0.54 | 0.55 | 0.55 | 0.45 |
Based on the provided data, IQVIA Holdings Inc has shown an increasing trend in both the fixed asset turnover and total asset turnover ratios over the years.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate revenue.
- IQVIA Holdings Inc's fixed asset turnover ratio has improved from 22.69 in 2020 to 28.79 in 2024.
- This indicates that the company is generating more revenue relative to its investment in fixed assets over the years, reflecting improved efficiency and asset utilization.
2. Total Asset Turnover:
- The total asset turnover ratio evaluates a company's ability to generate sales from its total assets.
- IQVIA Holdings Inc's total asset turnover ratio has also increased from 0.45 in 2020 to 0.57 in 2024.
- This upward trend suggests that the company is becoming more effective in utilizing its total assets to generate sales, indicating improved productivity and operational efficiency.
In conclusion, the increasing trends in both the fixed asset turnover and total asset turnover ratios for IQVIA Holdings Inc indicate a positive performance in terms of asset utilization and revenue generation efficiency over the years, which is a favorable sign for investors and stakeholders.