IQVIA Holdings Inc (IQV)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,702,000 | 1,376,000 | 1,216,000 | 1,366,000 | 1,814,000 |
| Short-term investments | US$ in thousands | 141,000 | 120,000 | 93,000 | 111,000 | 88,000 |
| Total current liabilities | US$ in thousands | 6,957,000 | 6,491,000 | 5,578,000 | 5,241,000 | 4,558,000 |
| Cash ratio | 0.26 | 0.23 | 0.23 | 0.28 | 0.42 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,702,000K
+ $141,000K)
÷ $6,957,000K
= 0.26
The cash ratio of IQVIA Holdings Inc has exhibited a declining trend over the past five years. Starting at 0.42 on December 31, 2020, the ratio decreased to 0.28 by December 31, 2021, and further decreased to 0.23 by December 31, 2022 and maintained this level until December 31, 2023. However, there was a slight increase to 0.26 by December 31, 2024.
This declining trend indicates that IQVIA Holdings Inc may have been less capable of meeting its short-term obligations with its cash and cash equivalents over the period. A lower cash ratio may suggest potential liquidity risks for the company, as it may not have sufficient liquid assets to cover its short-term liabilities. It would be important for stakeholders to further analyze IQVIA's cash management strategies and liquidity position to mitigate any potential liquidity challenges in the future.
Peer comparison
Dec 31, 2024