IQVIA Holdings Inc (IQV)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,403,000 | 14,308,000 | 14,004,000 | 13,470,000 | 10,935,000 |
| Receivables | US$ in thousands | 3,204,000 | 3,381,000 | 2,917,000 | 2,551,000 | 2,410,000 |
| Receivables turnover | 4.81 | 4.23 | 4.80 | 5.28 | 4.54 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $15,403,000K ÷ $3,204,000K
= 4.81
The receivables turnover ratio for IQVIA Holdings Inc has been fairly stable over the past five years, ranging from 4.23 to 5.28. This ratio measures how efficiently the company is able to collect payments from its customers on credit sales. A higher receivables turnover ratio generally indicates that the company is collecting payments more quickly, which is a positive sign of efficient credit management.
In 2021, IQVIA saw an improvement in its receivables turnover ratio to 5.28, indicating that the company was able to collect payments more efficiently compared to the previous year. However, there was a slight decrease in this ratio in 2022 to 4.80, before experiencing a further decline in 2023 to 4.23. This downtrend may suggest potential issues with customer creditworthiness or collection processes during those years.
The company managed to improve its receivables turnover ratio again in 2024 to 4.81, although it is still below the peak reached in 2021. Overall, IQVIA's performance in managing its accounts receivable appears to have some variability, with room for improvement in maintaining or increasing the efficiency of its collections process in order to optimize cash flow and reduce the risk of bad debts.
Peer comparison
Dec 31, 2024