IQVIA Holdings Inc (IQV)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,702,000 | 1,376,000 | 1,216,000 | 1,366,000 | 1,814,000 |
| Short-term investments | US$ in thousands | 141,000 | 120,000 | 93,000 | 111,000 | 88,000 |
| Receivables | US$ in thousands | 3,204,000 | 3,381,000 | 2,917,000 | 2,551,000 | 2,410,000 |
| Total current liabilities | US$ in thousands | 6,957,000 | 6,491,000 | 5,578,000 | 5,241,000 | 4,558,000 |
| Quick ratio | 0.73 | 0.75 | 0.76 | 0.77 | 0.95 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,702,000K
+ $141,000K
+ $3,204,000K)
÷ $6,957,000K
= 0.73
The quick ratio of IQVIA Holdings Inc has shown a declining trend over the past five years, decreasing from 0.95 as of December 31, 2020, to 0.73 as of December 31, 2024. This indicates a reduction in the company's ability to meet its short-term obligations with its most liquid assets. While the quick ratio above 1 is generally considered healthy, the company's quick ratio has consistently declined below this benchmark over the period in question. This may raise concerns about IQVIA's liquidity position and its ability to cover immediate financial obligations without relying on slower-moving or less liquid assets. Further investigation into the factors contributing to this decline in the quick ratio is recommended to assess the company's overall financial health and liquidity management.
Peer comparison
Dec 31, 2024