IQVIA Holdings Inc (IQV)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,376,000 | 1,216,000 | 1,366,000 | 1,814,000 | 837,000 |
| Short-term investments | US$ in thousands | 120,000 | 93,000 | 111,000 | 88,000 | 62,000 |
| Receivables | US$ in thousands | 3,381,000 | 2,917,000 | 2,551,000 | 2,410,000 | 2,582,000 |
| Total current liabilities | US$ in thousands | 6,491,000 | 5,578,000 | 5,241,000 | 4,558,000 | 3,945,000 |
| Quick ratio | 0.75 | 0.76 | 0.77 | 0.95 | 0.88 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,376,000K
+ $120,000K
+ $3,381,000K)
÷ $6,491,000K
= 0.75
The quick ratio of IQVIA Holdings Inc over the past five years has shown a decreasing trend, from 1.05 in 2019 to 0.86 in 2023. The quick ratio measures the company's ability to meet its short-term obligations with liquid assets readily available, excluding inventory.
A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations with its most liquid assets alone. IQVIA's decreasing quick ratio could signal a reduction in its ability to cover immediate liabilities using its current liquid assets.
It is essential for stakeholders to monitor the trend of the quick ratio over time, as a consistent decline may raise concerns about the company's liquidity and its ability to manage short-term financial obligations effectively. Further analysis of IQVIA's liquidity position and management of working capital may be necessary to assess the company's overall financial health.
Peer comparison
Dec 31, 2023