IQVIA Holdings Inc (IQV)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	14,308,000	14,004,000	13,470,000	10,935,000	10,616,000
Property, plant and equipment	US$ in thousands	523,000	532,000	497,000	482,000	458,000
Fixed asset turnover		27.36	26.32	27.10	22.69	23.18

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,308,000K ÷ $523,000K
= 27.36

Fixed asset turnover is a financial ratio that measures a company's efficiency in generating revenue from its investments in fixed assets. It indicates how well a company is utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio is generally considered favorable as it signifies that the company is generating more revenue per dollar of fixed assets.

In the case of IQVIA Holdings Inc, the fixed asset turnover ratio has shown an increasing trend over the past five years. From 2019 to 2023, the ratio has consistently improved from 24.21 to 28.65, indicating that the company has become more efficient in utilizing its fixed assets to generate revenue.

The latest fixed asset turnover ratio of 28.65 for December 31, 2023, suggests that for every dollar of fixed assets invested, IQVIA Holdings Inc generated $28.65 in sales. This indicates a high level of efficiency in the utilization of fixed assets to drive revenue growth.

Overall, the improving trend in the fixed asset turnover ratio reflects positively on IQVIA Holdings Inc's operational efficiency and effectiveness in generating revenue from its fixed asset base. It suggests that the company is making efficient use of its fixed assets to drive sales growth and maximize shareholder value.