IQVIA Holdings Inc (IQV)

Liquidity ratios

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
Current ratio 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 1.05 1.12 1.14 1.14
Quick ratio 0.75 0.69 0.71 0.70 0.76 0.76 0.82 0.80 0.77 0.81 0.87 0.98 0.95 0.96 0.92 0.93 0.88 0.96 0.97 0.99
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

Based on the provided data, we can observe the following trends in IQVIA Holdings Inc.'s liquidity ratios:

1. Current Ratio:
- The current ratio has been fluctuating around 0.80 to 0.90 over the past eight quarters, indicating that the company's current assets may not be significantly higher than its current liabilities. This suggests a potential risk in meeting short-term obligations.

2. Quick Ratio:
- The quick ratio, which only considers the most liquid assets to cover current liabilities, mirrors the trend of the current ratio, remaining in the range of 0.80 to 0.90. This implies that IQVIA may have limited ability to meet its short-term obligations without relying on inventory.

3. Cash Ratio:
- The cash ratio, which is the most stringent measure of liquidity focusing solely on cash and cash equivalents, has also shown a decreasing trend over the quarters, dropping from 0.43 in Q2 2022 to 0.34 in Q4 2023. This indicates a decline in the company's ability to cover its current liabilities with cash on hand.

Overall, the liquidity ratios of IQVIA Holdings Inc. suggest that the company may have challenges in meeting its short-term financial obligations, especially in terms of having sufficient liquid assets readily available. It would be advisable for the company to closely monitor and manage its liquidity position to ensure financial stability and operating efficiency in the future.

See also:

IQVIA Holdings Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 conversion cycle days 86.25 87.73 86.15 84.46 80.46 74.34 76.54 74.72 73.74 69.24 71.43 79.12 85.26 88.81 87.09 96.49 95.45 99.12 107.97 108.04

The cash conversion cycle is a measure of how long it takes a company to convert its investments in inventory and accounts receivable back into cash. A shorter cash conversion cycle typically indicates that a company is able to efficiently manage its working capital and generate cash flow.

Analyzing IQVIA Holdings Inc's cash conversion cycle over the past eight quarters, we observe a general upward trend from Q1 2022 to Q4 2023. This trend suggests that the company may be taking longer to convert its investments in inventory and accounts receivable into cash over time.

Specifically, in Q4 2023, IQVIA Holdings Inc had a cash conversion cycle of 83.14 days, which was higher compared to the previous quarter. This increase may signal potential challenges in managing working capital efficiently, which could impact the company's liquidity and cash flow.

It is important for IQVIA Holdings Inc to closely monitor its cash conversion cycle and implement strategies to optimize working capital management. By identifying and addressing inefficiencies in the cash conversion cycle, the company can improve its overall financial performance and ensure healthy cash flow levels.