IQVIA Holdings Inc (IQV)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	1,376,000	1,216,000	1,366,000	1,814,000	837,000
Short-term investments	US$ in thousands	120,000	93,000	111,000	88,000	62,000
Total current liabilities	US$ in thousands	6,491,000	5,578,000	5,241,000	4,558,000	3,945,000
Cash ratio		0.23	0.23	0.28	0.42	0.23

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,376,000K + $120,000K) ÷ $6,491,000K
= 0.23

The cash ratio of IQVIA Holdings Inc has fluctuated over the past five years, ranging from 0.34 to 0.58. A higher cash ratio indicates a company's ability to cover its short-term liabilities with its cash and cash equivalents.

In 2021, the cash ratio was at its highest at 0.41, suggesting that the company held a sufficient amount of cash to cover its short-term obligations. However, in 2020, the ratio significantly increased to 0.58, indicating an even stronger position in terms of liquidity.

The cash ratio decreased in 2019 to 0.38, which might suggest a slight decrease in the company's ability to cover short-term obligations. The subsequent increase in 2020 may have been a response to this decline.

Overall, while the cash ratios have fluctuated, IQVIA Holdings Inc generally maintained a healthy cash position to cover its short-term obligations during the period under review.