IQVIA Holdings Inc (IQV)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,358,000 | 1,091,000 | 966,000 | 279,000 | 191,000 |
| Total assets | US$ in thousands | 26,681,000 | 25,337,000 | 24,689,000 | 24,564,000 | 23,251,000 |
| ROA | 5.09% | 4.31% | 3.91% | 1.14% | 0.82% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,358,000K ÷ $26,681,000K
= 5.09%
The return on assets (ROA) for IQVIA Holdings Inc has shown a consistent improvement over the past five years. The ROA increased steadily from 0.82% in 2019 to 1.14% in 2020, then saw a more significant improvement to 3.91% in 2021. Subsequently, there was a moderate increase to 4.31% in 2022 and further growth to 5.09% in 2023.
The rising trend in ROA indicates that IQVIA Holdings Inc has been effectively utilizing its assets to generate profits over the years. The company's ability to generate higher returns relative to its total assets signifies improved operational efficiency and effectiveness in generating profits from its asset base.
The increasing ROA suggests that IQVIA Holdings Inc's management has been successful in optimizing asset utilization, which bodes well for the company's financial performance and overall profitability. This trend is generally viewed positively by investors and stakeholders as it reflects the company's ability to generate earnings from its asset base.
Peer comparison
Dec 31, 2023