IQVIA Holdings Inc (IQV)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,344,000 | 2,172,000 | 2,187,000 | 2,133,000 | 2,131,000 | 1,986,000 | 1,912,000 | 1,786,000 | 1,767,000 | 1,831,000 | 1,735,000 | 1,631,000 | 1,504,000 | 1,321,000 | 1,154,000 | 917,000 | 767,000 | 676,000 | 648,000 | 750,000 |
| Long-term debt | US$ in thousands | 12,838,000 | 12,293,000 | 12,091,000 | 12,819,000 | 12,955,000 | 12,322,000 | 12,433,000 | 11,833,000 | 12,595,000 | 12,243,000 | 12,615,000 | 12,547,000 | 12,034,000 | 12,081,000 | 12,140,000 | 12,092,000 | 12,384,000 | 12,195,000 | 11,965,000 | 11,894,000 |
| Total stockholders’ equity | US$ in thousands | 6,067,000 | 6,967,000 | 6,714,000 | 6,344,000 | 6,112,000 | 5,805,000 | 5,748,000 | 5,932,000 | 5,765,000 | 5,347,000 | 5,352,000 | 5,919,000 | 6,042,000 | 5,829,000 | 5,760,000 | 5,953,000 | 6,001,000 | 5,846,000 | 5,591,000 | 5,542,000 |
| Return on total capital | 12.40% | 11.28% | 11.63% | 11.13% | 11.18% | 10.96% | 10.52% | 10.05% | 9.62% | 10.41% | 9.66% | 8.83% | 8.32% | 7.38% | 6.45% | 5.08% | 4.17% | 3.75% | 3.69% | 4.30% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,344,000K ÷ ($12,838,000K + $6,067,000K)
= 12.40%
IQVIA Holdings Inc's return on total capital has shown a positive trend over the analyzed periods. The ratio increased from 4.30% in March 2020 to 12.40% in December 2024. This indicates the company's ability to generate profits from its total capital employed has been improving consistently. The uptrend in the return on total capital suggests efficient utilization of both equity and debt financing to generate returns for shareholders and debt holders. The average return on total capital for the period under review was approximately 8.31%. Overall, the increasing trend in the return on total capital reflects positively on IQVIA Holdings Inc's financial performance and capital allocation strategies.
Peer comparison
Dec 31, 2024