IQVIA Holdings Inc (IQV)

Activity ratios

Short-term

Turnover 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
Inventory turnover	—	67.10	—	—	—	72.34	70.88	76.13	82.46	71.06	66.05	76.59	79.06	73.93	65.46	69.14	66.00	61.61	69.53	48.84
Receivables turnover	4.76	4.68	4.49	4.19	4.23	4.41	4.51	4.58	4.80	5.27	5.14	5.22	5.28	5.68	5.54	4.94	4.58	4.40	4.46	4.10
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	50.66	16.41	20.74	21.01	28.97	29.19

IQVIA Holdings Inc's activity ratios provide insight into how efficiently the company manages its assets and liabilities. Let's analyze each of the activity ratios based on the provided data:

1. Inventory Turnover:
Inventory turnover measures how many times a company sells and replaces its inventory within a specific period. IQVIA Holdings Inc's inventory turnover ratio has shown fluctuations over the years, ranging from a low of 48.84 to a high of 82.46. The increasing trend in recent periods indicates that the company is managing its inventory efficiently, selling products faster, and restocking at an optimal pace.

2. Receivables Turnover:
Receivables turnover ratio indicates how many times, on average, the company collects accounts receivable during a period. IQVIA Holdings Inc's receivables turnover ratio has varied from 4.10 to 5.68. The increasing trend until September 2021 implies that the company was improving its collection efficiency. However, a slight decrease in the subsequent periods may suggest a longer collection period or changes in sales credit terms.

3. Payables Turnover:
Payables turnover ratio measures how efficiently a company pays its suppliers. The data shows that IQVIA Holdings Inc did not have information available for payables turnover, indicating limited visibility into the company's payment practices and relationships with suppliers.

4. Working Capital Turnover:
The working capital turnover ratio assesses how well a company utilizes its working capital to generate sales revenue. IQVIA Holdings Inc's working capital turnover ratios ranged from 16.41 to 50.66, indicating fluctuations in the efficiency of working capital management. The significant variations in the ratios over different periods could be due to changes in sales volume, operational efficiency, or working capital utilization strategies.

In conclusion, IQVIA Holdings Inc has shown improvements in inventory turnover and stable to slightly decreasing trends in receivables turnover. However, limited data availability hinders a comprehensive assessment of payables turnover, while fluctuating working capital turnover ratios suggest varying efficiency in utilizing working capital to drive sales. Further analysis of payables turnover and additional context on working capital management practices would provide a more holistic view of the company's operational efficiency and financial performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	—	5.44	—	—	—	5.05	5.15	4.79	4.43	5.14	5.53	4.77	4.62	4.94	5.58	5.28	5.53	5.92	5.25	7.47
Days of sales outstanding (DSO)	days	76.75	77.96	81.25	87.03	86.25	82.68	81.00	79.67	76.03	69.20	71.02	69.95	69.13	64.30	65.86	73.84	79.73	82.89	81.84	89.02
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Activity ratios such as Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables provide insight into how efficiently a company is managing its working capital.

1. Days of Inventory on Hand (DOH):
- IQVIA Holdings Inc's DOH has shown a decreasing trend over the past few quarters, indicating that the company is managing its inventory more efficiently.
- In the most recent quarter, the DOH was 4.43 days, suggesting that the company holds inventory for a relatively short period before selling it.

2. Days of Sales Outstanding (DSO):
- The DSO for IQVIA Holdings Inc fluctuated during the period, with some quarters showing a decrease while others showed an increase.
- A lower DSO implies that the company is collecting its accounts receivable faster, which is a positive sign for cash flow management.
- As of the latest available data, DSO stood at 76.75 days, suggesting that the company takes around 76.75 days to collect its receivables.

3. Number of Days of Payables:
- The data provided does not include information on the Number of Days of Payables for IQVIA Holdings Inc, indicating that payables turnover was not available for analysis.
- Payables turnover is important as it reflects how quickly a company pays its suppliers, impacting cash flow and liquidity.

Overall, the activity ratios for IQVIA Holdings Inc show efficient management of inventory and accounts receivable, but further analysis of payables turnover would provide a more holistic view of the company's working capital management.

Long-term

	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
Fixed asset turnover	28.48	29.17	29.07	28.01	27.36	28.61	27.74	26.99	26.32	27.47	26.03	25.74	27.10	27.27	26.84	24.73	22.89	23.52	23.82	24.27
Total asset turnover	0.57	0.55	0.55	0.54	0.54	0.55	0.54	0.55	0.55	0.57	0.56	0.55	0.55	0.55	0.53	0.48	0.45	0.45	0.46	0.47

The fixed asset turnover ratio of IQVIA Holdings Inc has been relatively stable over the analyzed period, fluctuating between 22.89 to 29.17 times. This indicates that the company generates between approximately 22.89 to 29.17 times in revenue for every dollar invested in fixed assets. The trend shows a general increase in efficiency in utilizing fixed assets as the ratio slightly improved over time.

On the other hand, the total asset turnover ratio fluctuated between 0.45 to 0.57 times during the same period, indicating that the company generated between approximately 0.45 to 0.57 times in revenue for every dollar invested in total assets. The ratio remained relatively consistent, with a slight increase towards the end of the period. This suggests that IQVIA Holdings Inc has been effectively generating revenue relative to its total asset base.

Overall, the company demonstrated efficiency in both fixed asset utilization and total asset turnover, with a slightly improving trend in recent periods. This indicates a positive operational performance in leveraging assets to generate revenue.