IQVIA Holdings Inc (IQV)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,344,000 | 2,131,000 | 1,767,000 | 1,504,000 | 767,000 |
| Long-term debt | US$ in thousands | 12,838,000 | 12,955,000 | 12,595,000 | 12,034,000 | 12,384,000 |
| Total stockholders’ equity | US$ in thousands | 6,067,000 | 6,112,000 | 5,765,000 | 6,042,000 | 6,001,000 |
| Return on total capital | 12.40% | 11.18% | 9.62% | 8.32% | 4.17% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,344,000K ÷ ($12,838,000K + $6,067,000K)
= 12.40%
To analyze IQVIA Holdings Inc's return on total capital over the years, we observe a positive trend from 2020 to 2024.
- In 2020, the return on total capital was 4.17%, indicating that for every dollar of total capital employed, the company generated a return of 4.17%.
- This ratio increased to 8.32% in 2021, showing a significant improvement, suggesting the company became more efficient in utilizing its capital to generate earnings.
- By the end of 2022, the return on total capital further increased to 9.62%, indicating a continued positive trend in capital efficiency.
- In 2023, the return on total capital rose to 11.18%, reflecting improving profitability and effectiveness in utilizing capital resources.
- The most recent data for 2024 shows a return on total capital of 12.40%, signifying the company's strong performance in generating returns relative to the total capital employed.
Overall, IQVIA Holdings Inc has shown a positive trajectory in optimizing its capital utilization, as evidenced by the increasing trend in return on total capital over the years, indicating an improving efficiency in generating profits relative to its total capital base.
Peer comparison
Dec 31, 2024