IQVIA Holdings Inc (IQV)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	15,237,000	14,964,000	14,623,000	14,368,000	14,308,000	14,246,000	14,145,000	14,033,000	14,004,000	13,925,000	13,769,000	13,666,000	13,470,000	13,226,000	12,614,000	11,671,000	11,033,000	10,630,000	10,575,000	10,800,000
Total current assets	US$ in thousands	5,829,000	5,632,000	5,622,000	5,651,000	5,596,000	5,208,000	5,329,000	5,328,000	4,981,000	4,752,000	4,911,000	4,772,000	4,763,000	4,534,000	5,068,000	5,579,000	5,090,000	4,645,000	4,208,000	4,277,000
Total current liabilities	US$ in thousands	6,957,000	6,992,000	6,620,000	6,448,000	6,491,000	6,589,000	6,543,000	6,657,000	5,578,000	5,253,000	5,104,000	5,157,000	5,241,000	4,847,000	4,819,000	4,868,000	4,558,000	4,139,000	3,843,000	3,907,000
Working capital turnover		—	—	—	—	—	—	—	—	—	—	—	—	—	—	50.66	16.41	20.74	21.01	28.97	29.19

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $15,237,000K ÷ ($5,829,000K – $6,957,000K)
= —

The working capital turnover ratio is a measure of how efficiently a company is utilizing its working capital to generate sales revenue. It is calculated by dividing net sales by average working capital.

In the case of IQVIA Holdings Inc, the working capital turnover ratio has fluctuated over the analyzed periods. As of June 30, 2021, the ratio notably increased to 50.66, indicating a significant improvement in the company's efficiency in converting working capital into sales. However, this sharp increase may be an outlier or influenced by specific factors during that period.

Subsequently, the ratio decreased to 16.41 as of March 31, 2021, which suggests a less efficient use of working capital compared to the previous period. This decline could be attributed to various factors such as changes in operating activities, management of inventory levels, or shifts in sales volume.

As the data shows no values beyond June 30, 2021, it is challenging to provide further analysis or trend identification for the working capital turnover of IQVIA Holdings Inc. It is essential for stakeholders to monitor this ratio over time to assess the company's ongoing ability to effectively utilize its working capital in generating sales revenue.