IQVIA Holdings Inc (IQV)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,596,000 | 4,981,000 | 4,763,000 | 5,090,000 | 4,126,000 |
| Total current liabilities | US$ in thousands | 6,491,000 | 5,578,000 | 5,241,000 | 4,558,000 | 3,945,000 |
| Current ratio | 0.86 | 0.89 | 0.91 | 1.12 | 1.05 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,596,000K ÷ $6,491,000K
= 0.86
The current ratio of IQVIA Holdings Inc has been fluctuating over the past five years. The ratio was at its lowest in 2023 at 0.86, indicating that the company's current assets may not be sufficient to cover its current liabilities. This could potentially pose a liquidity risk. In comparison, the current ratio was higher in 2020 and 2021, at 1.12 and 0.91 respectively, suggesting a stronger ability to meet short-term obligations with current assets. However, the ratio decreased in 2022 and 2023, which may signal a potential decrease in liquidity. Overall, the downward trend in the current ratio over the past two years warrants further investigation to understand the company's management of current assets and liabilities.
Peer comparison
Dec 31, 2023