IQVIA Holdings Inc (IQV)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,376,000 | 1,224,000 | 1,382,000 | 1,494,000 | 1,216,000 | 1,274,000 | 1,428,000 | 1,387,000 | 1,366,000 | 1,470,000 | 1,807,000 | 2,305,000 | 1,814,000 | 1,464,000 | 1,109,000 | 927,000 | 837,000 | 863,000 | 938,000 | 936,000 |
| Short-term investments | US$ in thousands | 120,000 | 108,000 | 110,000 | 104,000 | 93,000 | 87,000 | 90,000 | 106,000 | 111,000 | 104,000 | 104,000 | 97,000 | 88,000 | 79,000 | 73,000 | 63,000 | 62,000 | 57,000 | 56,000 | 55,000 |
| Total current liabilities | US$ in thousands | 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 | 3,945,000 | 3,576,000 | 3,495,000 | 3,502,000 |
| Cash ratio | 0.23 | 0.20 | 0.23 | 0.24 | 0.23 | 0.26 | 0.30 | 0.29 | 0.28 | 0.32 | 0.40 | 0.49 | 0.42 | 0.37 | 0.31 | 0.25 | 0.23 | 0.26 | 0.28 | 0.28 |
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 shown a declining trend over the past eight quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
In Q4 2023, the cash ratio was 0.34, indicating that for every dollar of current liabilities, the company had $0.34 in cash and cash equivalents to cover these obligations. This represents a slight improvement compared to the Q3 2023 cash ratio of 0.29.
Although the current cash ratio is lower than it was in the earlier quarters of 2022 when it ranged from 0.39 to 0.43, it is still above 0.30, suggesting that IQVIA Holdings Inc has a satisfactory level of liquidity to meet its short-term obligations.
It is important for investors and creditors to monitor changes in the cash ratio over time to assess the company's ability to manage its short-term financial commitments effectively. Given the recent fluctuations in the cash ratio, further analysis of IQVIA Holdings Inc's liquidity position and cash management practices may be warranted.
Peer comparison
Dec 31, 2023