IQVIA Holdings Inc (IQV)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 4.43 | 4.62 | 5.53 |
| Days of sales outstanding (DSO) | days | 75.92 | 86.25 | 76.03 | 69.13 | 80.44 |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 75.92 | 86.25 | 80.46 | 73.74 | 85.97 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 75.92 – —
= 75.92
The cash conversion cycle of IQVIA Holdings Inc has shown fluctuations over the past five years. In December 31, 2020, the cash conversion cycle was 85.97 days, which decreased to 73.74 days by December 31, 2021. The cycle then increased to 80.46 days by December 31, 2022, followed by a further increase to 86.25 days by December 31, 2023. However, there was a significant improvement by December 31, 2024, with the cycle decreasing to 75.92 days.
Overall, the company has been able to manage its cash conversion cycle effectively, with efforts to optimize the time it takes to convert its investments in inventory and receivables into cash. The downward trend in the cash conversion cycle in recent years indicates potential improvements in inventory management and receivables collection processes, which can positively impact the company's liquidity and working capital management. Continued monitoring and analysis of the cash conversion cycle will be essential to ensure ongoing efficiency in the company's cash flow operations.
Peer comparison
Dec 31, 2024