IQVIA Holdings Inc (IQV)
Receivables 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 |
| Receivables | US$ in thousands | 3,381,000 | 2,917,000 | 2,551,000 | 2,410,000 | 2,582,000 |
| Receivables turnover | 4.23 | 4.80 | 5.28 | 4.54 | 4.11 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $14,308,000K ÷ $3,381,000K
= 4.23
The receivables turnover ratio for IQVIA Holdings Inc has shown a declining trend over the past five years, indicating a decrease in the efficiency of the company in collecting its accounts receivable. The ratio decreased from 5.32 in 2021 to 4.39 in 2023.
A lower receivables turnover ratio suggests that it takes the company more time to collect its accounts receivable, which could potentially lead to cash flow issues and an increased risk of bad debts.
It is important for IQVIA Holdings Inc to closely monitor and improve its accounts receivable management practices to ensure timely collection of receivables and maintain a healthy liquidity position.
Peer comparison
Dec 31, 2023