IQVIA Holdings Inc (IQV)
Operating profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,202,000 | 2,077,000 | 2,008,000 | 2,012,000 | 1,977,000 | 1,855,000 | 1,846,000 | 1,775,000 | 1,799,000 | 1,883,000 | 1,713,000 | 1,546,000 | 1,393,000 | 1,219,000 | 1,104,000 | 880,000 | 731,000 | 608,000 | 625,000 | 760,000 |
| Revenue (ttm) | US$ in thousands | 15,237,000 | 14,964,000 | 14,623,000 | 14,368,000 | 14,308,000 | 14,246,000 | 14,145,000 | 14,033,000 | 14,004,000 | 13,925,000 | 13,769,000 | 13,666,000 | 13,470,000 | 13,226,000 | 12,614,000 | 11,671,000 | 11,033,000 | 10,630,000 | 10,575,000 | 10,800,000 |
| Operating profit margin | 14.45% | 13.88% | 13.73% | 14.00% | 13.82% | 13.02% | 13.05% | 12.65% | 12.85% | 13.52% | 12.44% | 11.31% | 10.34% | 9.22% | 8.75% | 7.54% | 6.63% | 5.72% | 5.91% | 7.04% |
December 31, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $2,202,000K ÷ $15,237,000K
= 14.45%
The operating profit margin of IQVIA Holdings Inc has shown a generally increasing trend over the period from March 31, 2020, to December 31, 2024. The operating profit margin started at 7.04% in March 2020 and displayed fluctuations in the subsequent quarters before showing a steady growth trend. By December 31, 2024, the operating profit margin reached its peak at 14.45%.
The increasing trend in the operating profit margin indicates that IQVIA Holdings Inc has been effectively managing its operating expenses relative to its revenue. This could be attributed to cost-saving measures, operational efficiencies, revenue growth, or pricing strategies implemented by the company during this period.
A rising operating profit margin is generally considered a positive indicator of a company's operational efficiency and profitability. It suggests that the company is generating more profit from each dollar of sales, which can be a sign of strong financial health and sustainable growth.
Overall, the consistent improvement in IQVIA Holdings Inc's operating profit margin from 7.04% in March 2020 to 14.45% by December 31, 2024, reflects the company's ability to optimize its operations and enhance profitability over time.
Peer comparison
Dec 31, 2024