IQVIA Holdings Inc (IQV)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,131,000 | 1,767,000 | 1,504,000 | 767,000 | 754,000 |
| Long-term debt | US$ in thousands | 12,955,000 | 12,595,000 | 12,034,000 | 12,384,000 | 11,545,000 |
| Total stockholders’ equity | US$ in thousands | 6,112,000 | 5,765,000 | 6,042,000 | 6,001,000 | 6,003,000 |
| Return on total capital | 11.18% | 9.62% | 8.32% | 4.17% | 4.30% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,131,000K ÷ ($12,955,000K + $6,112,000K)
= 11.18%
The return on total capital for IQVIA Holdings Inc has shown a positive trend over the past five years, increasing from 4.78% in 2019 to 10.42% in 2023. This indicates that the company has been able to generate higher returns relative to the total capital employed in its operations.
The consistent improvement in the return on total capital reflects the company's efficient utilization of its capital resources to generate earnings. This indicates effective management of assets and liabilities to drive profitability.
Furthermore, the increasing trend in return on total capital suggests that IQVIA Holdings Inc has been able to enhance its operational efficiency and profitability over the years. Investors and stakeholders may view this positively as it indicates a growing ability of the company to generate returns on the capital invested in its business.
Overall, the improving return on total capital for IQVIA Holdings Inc demonstrates a positive performance in utilizing its capital effectively to generate profits, which is a key indicator of financial health and efficiency.
Peer comparison
Dec 31, 2023