IQVIA Holdings Inc (IQV)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 10.15% | 11.09% | 8.43% | 4.03% | 4.08% |
| Operating profit margin | 13.82% | 12.85% | 10.34% | 6.68% | 7.32% |
| Pretax margin | 10.20% | 9.65% | 8.38% | 3.21% | 2.89% |
| Net profit margin | 9.49% | 7.79% | 7.17% | 2.55% | 1.80% |
The profitability ratios of IQVIA Holdings Inc show a generally positive trend over the years, indicating improving profitability levels. The gross profit margin has been relatively stable around the mid-30% range, suggesting efficient cost management and pricing strategies.
The operating profit margin has shown consistent growth from 6.89% in 2020 to 13.75% in 2023, reflecting improved operational efficiency and strong financial performance. This indicates that the company is effectively controlling its operating expenses and generating more profit from its core business activities.
The pretax margin has also shown a consistent increase over the years, reaching 9.74% in 2023. This reflects the company's ability to generate higher profits before considering taxes, indicating improved overall financial performance and effective tax management strategies.
The net profit margin has experienced significant growth, increasing from 1.72% in 2019 to 9.06% in 2023. This indicates that IQVIA Holdings Inc has been successful in effectively managing its costs, generating better bottom-line results, and delivering value to its shareholders.
Overall, the improving trend in the profitability ratios of IQVIA Holdings Inc demonstrates the company's strong operational performance and profitability growth over the years. It reflects well on the company's management strategies and efficiency in utilizing its resources to generate higher profits.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.41% | 7.10% | 5.64% | 2.98% | 3.34% |
| Return on assets (ROA) | 5.09% | 4.31% | 3.91% | 1.14% | 0.82% |
| Return on total capital | 11.18% | 9.62% | 8.32% | 4.17% | 4.30% |
| Return on equity (ROE) | 22.22% | 18.92% | 15.99% | 4.65% | 3.18% |
IQVIA Holdings Inc has demonstrated consistent improvement in its profitability ratios over the past five years.
Starting with the Operating ROA, the company has shown a positive trend, increasing from 3.66% in 2019 to 7.72% in 2023. This indicates that IQVIA has been able to generate more operating income per dollar of assets employed in its operations.
Moving on to the ROA, we see a similar trend of improvement. The company's ROA has increased from 0.82% in 2019 to 5.09% in 2023. This suggests that IQVIA has been able to increase its overall profitability relative to its total assets.
The return on total capital has also shown a positive trend, increasing from 4.78% in 2019 to 10.42% in 2023. This indicates that IQVIA has been able to generate higher returns on the total capital employed in the business.
Lastly, the ROE has exhibited significant improvement over the years, rising from 3.18% in 2019 to 22.22% in 2023. This indicates that IQVIA has been able to generate higher returns for its shareholders relative to their equity investments in the company.
Overall, the profitability ratios of IQVIA Holdings Inc reflect a positive growth trajectory, indicating the company's ability to efficiently utilize its assets and capital to generate profits for its stakeholders.