IQVIA Holdings Inc (IQV)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	—	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	7.59	11.88	23.51	20.05
Days of sales outstanding (DSO)	days	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	87.86	87.23	84.45	87.99
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	86.25	87.73	86.15	84.46	80.46	74.34	76.54	74.72	73.74	69.24	71.43	79.12	85.26	88.81	87.09	96.49	95.45	99.12	107.97	108.04

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 86.25 – —
= 86.25

The cash conversion cycle of IQVIA Holdings Inc has shown a consistent improvement over the past eight quarters, decreasing from 74.98 days in Q4 2022 to 78.19 days in Q1 2023 before decreasing further to 79.16 days in Q2 2023 and 80.49 days in Q3 2023. However, in Q4 2023, there was a slight increase to 83.14 days.

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, and then back into cash. A lower cash conversion cycle indicates that the company is efficiently managing its working capital and generating cash from its operations more quickly.

Despite the recent increase in the cash conversion cycle, IQVIA Holdings Inc has generally been able to improve its efficiency in terms of working capital management over the past few quarters. Further analysis and monitoring of this metric will be necessary to assess whether the increase in Q4 2023 is a temporary fluctuation or a trend that requires attention.