IQVIA Holdings Inc (IQV)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,829,000 | 5,596,000 | 4,981,000 | 4,763,000 | 5,090,000 |
| Total current liabilities | US$ in thousands | 6,957,000 | 6,491,000 | 5,578,000 | 5,241,000 | 4,558,000 |
| Current ratio | 0.84 | 0.86 | 0.89 | 0.91 | 1.12 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,829,000K ÷ $6,957,000K
= 0.84
Based on the provided data for IQVIA Holdings Inc, the current ratio has been showing a decreasing trend over the past five years. As at December 31, 2020, the current ratio stood at 1.12, indicating that the company had $1.12 in current assets for every $1 in current liabilities. However, this ratio decreased to 0.91 by December 31, 2021, and continued to decline to 0.89, 0.86, and 0.84 by the end of 2022, 2023, and 2024 respectively.
A decreasing current ratio over time may signify potential liquidity concerns for IQVIA Holdings Inc. A current ratio below 1 indicates that the company may have difficulties meeting its short-term obligations with its current assets alone. This trend warrants further investigation into the company's current asset management, short-term debt levels, and overall liquidity position in order to assess its ability to meet its financial obligations as they come due.
Peer comparison
Dec 31, 2024