IQVIA Holdings Inc (IQV)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,202,000 | 1,977,000 | 1,799,000 | 1,393,000 | 731,000 |
| Total assets | US$ in thousands | 26,899,000 | 26,681,000 | 25,337,000 | 24,689,000 | 24,564,000 |
| Operating ROA | 8.19% | 7.41% | 7.10% | 5.64% | 2.98% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,202,000K ÷ $26,899,000K
= 8.19%
Operating ROA is a key financial metric that measures a company's efficiency in generating operating income from its assets. From the data provided for IQVIA Holdings Inc, we observe a steady improvement in the operating ROA over the five-year period.
In December 2020, the operating ROA was 2.98%, reflecting that the company was generating approximately $0.0298 in operating income for every $1 of assets employed. Subsequently, there was a notable increase in operating ROA to 5.64% by December 2021, indicating enhanced efficiency in asset utilization.
The positive trend continued into 2022 and 2023, with operating ROA reaching 7.10% and 7.41% respectively. This indicates a continuous improvement in the company's ability to generate operating income from its asset base.
By December 2024, IQVIA Holdings Inc achieved an operating ROA of 8.19%, the highest in the five-year period. This signifies a significant enhancement in operational efficiency and asset productivity.
Overall, the consistent upward trend in operating ROA demonstrates IQVIA Holdings Inc's effectiveness in utilizing its assets to generate operating income, highlighting a positive trajectory in the company's financial performance and operational efficiency over the years.
Peer comparison
Dec 31, 2024