IQVIA Holdings Inc (IQV)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover	—	82.46	79.06	66.00	73.79
Receivables turnover	4.23	4.80	5.28	4.54	4.11
Payables turnover	—	—	—	—	—
Working capital turnover	—	—	—	20.55	58.65

Inventory turnover, payables turnover, and working capital turnover ratios are not provided in the data. However, we can analyze the Receivables turnover ratio for IQVIA Holdings Inc over the past five years.

The Receivables turnover ratio indicates how efficiently the company is able to collect outstanding receivables from its customers. A higher ratio implies a shorter time it takes to collect outstanding receivables.

From 2019 to 2023, IQVIA's Receivables turnover ratio has fluctuated, decreasing from 4.20 in 2019 to 4.39 in 2023. This fluctuation suggests that IQVIA's efficiency in collecting receivables has improved slightly in the most recent year compared to 2019 but has been variable over the period.

Overall, IQVIA's ability to collect receivables efficiently has been relatively stable, with the ratio consistently above 4.0. However, further analysis and comparison with industry benchmarks would be necessary to determine the effectiveness of IQVIA's receivables management in a broader context.

Average number of days

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	—	4.43	4.62	5.53	4.95
Days of sales outstanding (DSO)	days	86.25	76.03	69.13	80.44	88.77
Number of days of payables	days	—	—	—	—	—

The Days of Sales Outstanding (DSO) ratio is used to evaluate how efficiently a company is able to collect its accounts receivable. A lower DSO indicates quicker collection of receivables, which is generally favorable as it signifies better cash flow management.

Looking at IQVIA Holdings Inc's DSO over the past five years, we observe that it has fluctuated. The trend shows that the DSO decreased from 86.84 days in 2019 to 68.64 days in 2021 before increasing to 83.14 days in 2023. This increase in 2023 could suggest that IQVIA may be facing challenges with collecting its accounts receivable more promptly compared to the previous year.

In order to assess the company's performance more comprehensively, it would be beneficial to compare the DSO to industry benchmarks or competitors' ratios. Additionally, analyzing the company's DSO relative to its historical trend and considering any external factors impacting receivables collections would provide deeper insights into IQVIA's liquidity and operational efficiency.

Long-term

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Fixed asset turnover	27.36	26.32	27.10	22.69	23.18
Total asset turnover	0.54	0.55	0.55	0.45	0.46

IQVIA Holdings Inc's long-term activity ratios indicate its efficiency in utilizing assets to generate revenue over the past five years. The fixed asset turnover has shown a consistent improvement from 2019 to 2023, suggesting that the company is generating more revenue per dollar of fixed assets. This indicates that IQVIA has been able to increase its operational efficiency and productivity in utilizing its long-term assets in generating sales.

On the other hand, the total asset turnover has been relatively stable around 0.56 to 0.48 over the same period. This ratio reflects how well the company is utilizing all its assets (both fixed and current) to generate revenue. While the total asset turnover is lower compared to the fixed asset turnover, the relatively stable trend indicates that IQVIA has been maintaining a consistent level of asset efficiency in generating sales.

Overall, the improvement in fixed asset turnover suggests a positive trend in IQVIA's long-term asset utilization efficiency, while the stable total asset turnover indicates a consistent performance in utilizing all assets to generate revenue. It is essential for the company to continue monitoring and optimizing its asset utilization to further enhance its operational efficiency and financial performance.