IQVIA Holdings Inc (IQV)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 15.25% | 10.15% | 11.09% | 8.43% | 4.03% |
| Operating profit margin | 14.30% | 13.82% | 12.85% | 10.34% | 6.68% |
| Pretax margin | 10.87% | 10.20% | 9.65% | 8.38% | 3.21% |
| Net profit margin | 8.91% | 9.49% | 7.79% | 7.17% | 2.55% |
Based on the provided data for IQVIA Holdings Inc, the profitability ratios show a positive trend over the years, indicating improving profitability and efficiency in managing the company's operations.
1. Gross Profit Margin:
- The gross profit margin has been increasing steadily from 4.03% in 2020 to 15.25% in 2024.
- This indicates that the company has been able to effectively control its direct costs of goods sold and improve its pricing strategy, resulting in a higher percentage of revenue retained as gross profit.
2. Operating Profit Margin:
- The operating profit margin has also shown consistent growth, rising from 6.68% in 2020 to 14.30% in 2024.
- This suggests that IQVIA has been able to manage its operating expenses efficiently while increasing its operating income, reflecting stronger operational performance.
3. Pretax Margin:
- The pretax margin has improved from 3.21% in 2020 to 10.87% in 2024.
- This ratio demonstrates the company's ability to generate higher profits before accounting for taxes, indicating an improvement in overall profitability.
4. Net Profit Margin:
- The net profit margin has shown fluctuations but generally trended upwards, reaching 8.91% in 2024.
- This ratio reflects the company's success in managing all costs, including taxes and interest expenses, to generate a higher percentage of net income for each dollar of revenue.
Overall, the increasing trend in profitability ratios for IQVIA Holdings Inc suggests that the company has been successful in enhancing its operational efficiency and profitability over the years, which is a positive indicator for investors and stakeholders.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.19% | 7.41% | 7.10% | 5.64% | 2.98% |
| Return on assets (ROA) | 5.10% | 5.09% | 4.31% | 3.91% | 1.14% |
| Return on total capital | 12.40% | 11.18% | 9.62% | 8.32% | 4.17% |
| Return on equity (ROE) | 22.63% | 22.22% | 18.92% | 15.99% | 4.65% |
Based on the provided data, IQVIA Holdings Inc has shown an increasing trend in its profitability ratios over the years analyzed.
1. Operating Return on Assets (Operating ROA) has improved from 2.98% in December 2020 to 8.19% in December 2024. This ratio indicates the company's ability to generate operating income from its assets, and the increasing trend shows improved operational efficiency and profitability.
2. Return on Assets (ROA) has also shown a positive trend, increasing from 1.14% in December 2020 to 5.10% in December 2024. ROA measures how efficiently the company is utilizing its assets to generate profits, and the rising values indicate better asset utilization and overall profitability.
3. Return on Total Capital has consistently increased from 4.17% in December 2020 to 12.40% in December 2024. This ratio reflects the company's ability to generate returns from all sources of capital, including debt and equity, and the upward trend suggests improved overall capital efficiency and profitability.
4. Return on Equity (ROE) has seen significant growth, rising from 4.65% in December 2020 to 22.63% in December 2024. ROE measures the returns generated for shareholders' equity, and the substantial increase indicates enhanced profitability and effectiveness in generating returns for equity investors.
Overall, based on these profitability ratios, IQVIA Holdings Inc has demonstrated a commendable performance in terms of operational efficiency, asset utilization, capital management, and returns to shareholders over the analyzed period.