IQVIA Holdings Inc (IQV)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 0.73 | 0.70 | 0.75 | 0.78 | 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 |
| Cash ratio | 0.26 | 0.24 | 0.25 | 0.24 | 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 |
The liquidity ratios of IQVIA Holdings Inc show a fluctuating trend over the periods analyzed.
The current ratio, which measures the company's ability to cover short-term obligations with short-term assets, has been declining gradually from 1.15 in March 2021 to 0.84 in December 2024. This indicates a potential weakening in the company's short-term liquidity position.
Similarly, the quick ratio, a more stringent measure of liquidity excluding inventory from current assets, has also been decreasing from 0.98 in March 2021 to 0.73 in December 2024. This declining trend in the quick ratio suggests that IQVIA may be facing challenges in meeting its short-term obligations without relying on inventory.
Furthermore, the cash ratio, which shows the proportion of current liabilities that can be covered by cash and cash equivalents, has shown a downward trajectory from 0.49 in March 2021 to 0.26 in December 2024. This indicates a decreasing ability of IQVIA to meet its short-term liabilities solely with cash.
Overall, the decreasing trend in these liquidity ratios signals a potential liquidity risk for IQVIA Holdings Inc, highlighting the importance of monitoring its cash flow management and working capital efficiency to ensure the company can meet its short-term obligations effectively.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 76.75 | 83.40 | 81.25 | 87.03 | 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 |
The cash conversion cycle of IQVIA Holdings Inc has shown a generally decreasing trend from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
IQVIA Holdings Inc's cash conversion cycle decreased from 96.49 days on March 31, 2020, to 76.75 days on December 31, 2024. A decreasing cash conversion cycle indicates that the company is managing its cash flows more efficiently over time.
However, it's important to note that fluctuations in the cash conversion cycle can be influenced by factors such as changes in inventory management, sales terms, and accounts receivable collection practices.
Overall, the downward trend in IQVIA Holdings Inc's cash conversion cycle is a positive sign of improved efficiency in managing working capital and converting investments into cash.