IQVIA Holdings Inc (IQV)
Current ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,829,000 | 5,632,000 | 5,622,000 | 5,651,000 | 5,596,000 | 5,208,000 | 5,329,000 | 5,328,000 | 4,981,000 | 4,752,000 | 4,911,000 | 4,772,000 | 4,763,000 | 4,534,000 | 5,068,000 | 5,579,000 | 5,090,000 | 4,645,000 | 4,208,000 | 4,277,000 |
| Total current liabilities | US$ in thousands | 6,957,000 | 6,992,000 | 6,620,000 | 6,448,000 | 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 |
| Current ratio | 0.84 | 0.81 | 0.85 | 0.88 | 0.86 | 0.79 | 0.81 | 0.80 | 0.89 | 0.90 | 0.96 | 0.93 | 0.91 | 0.94 | 1.05 | 1.15 | 1.12 | 1.12 | 1.09 | 1.09 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,829,000K ÷ $6,957,000K
= 0.84
IQVIA Holdings Inc's current ratio has shown a declining trend over the past few years, indicating a potential deterioration in the company's short-term liquidity position. The current ratio measures the company's ability to meet its short-term obligations with its current assets. As of December 31, 2024, the current ratio stood at 0.84, which means the company's current assets were only sufficient to cover 84% of its current liabilities. This suggests a potential risk of liquidity constraints or difficulty in meeting its short-term financial obligations.
It is worth noting that the current ratio has been decreasing since March 31, 2023, when it was at 0.80. The company experienced a slight increase in the current ratio in the following periods until reaching a peak of 1.15 on March 31, 2021. However, since then, the ratio has been on a downward trend.
Overall, the declining current ratio of IQVIA Holdings Inc raises concerns about its ability to efficiently manage its short-term liquidity and meet its current financial obligations. Investors and stakeholders may need to closely monitor the company's liquidity position and management of current assets and liabilities to assess the potential risks associated with its financial health.
Peer comparison
Dec 31, 2024