IQVIA Holdings Inc (IQV)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.48 | 0.49 | 0.50 | 0.49 | 0.50 |
| Debt-to-capital ratio | 0.68 | 0.68 | 0.69 | 0.67 | 0.67 |
| Debt-to-equity ratio | 2.12 | 2.12 | 2.18 | 1.99 | 2.06 |
| Financial leverage ratio | 4.43 | 4.37 | 4.39 | 4.09 | 4.09 |
IQVIA Holdings Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations and the extent of its leverage. The Debt-to-assets ratio has been relatively stable over the years, ranging from 0.48 to 0.50, suggesting that about half of the company's assets are financed by debt.
The Debt-to-capital ratio shows a slight increase from 0.67 to 0.69 between 2020 and 2022 before stabilizing at 0.68 in 2023 and 2024. This ratio indicates that around 68% of IQVIA's capital structure is funded by debt.
The Debt-to-equity ratio reflects the proportion of debt and equity in the company's capital structure. IQVIA's Debt-to-equity ratio fluctuated between 1.99 and 2.18, ending at 2.12 in 2024. This implies that the company's financial structure has higher dependency on debt financing compared to equity.
The Financial leverage ratio, which considers total assets in relation to equity, increased from 4.09 in 2020 to 4.43 in 2024. This suggests that IQVIA has been relying more on debt to finance its operations, potentially increasing financial risk.
Overall, IQVIA's solvency ratios indicate a stable debt level in relation to assets and capital, but a relatively higher reliance on debt financing compared to equity. The increasing financial leverage ratio suggests a growing level of financial leverage over the years, which may warrant closer monitoring of the company's long-term debt obligations.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.50 | 3.17 | 4.25 | 4.01 | 1.84 |
Interest coverage is a crucial financial ratio that indicates a company's ability to meet its interest obligations. In the case of IQVIA Holdings Inc, the interest coverage ratio has demonstrated an improving trend over the years.
As of December 31, 2020, the interest coverage ratio was 1.84, suggesting that the company's operating income was 1.84 times its interest expenses. This ratio increased significantly to 4.01 by December 31, 2021, indicating a stronger ability to cover interest costs.
Subsequently, the interest coverage ratio continued to improve, reaching 4.25 as of December 31, 2022. This upward trend reflects a positive sign of the company's improving financial health and its ability to comfortably meet interest payments.
However, there was a slight decline in the interest coverage ratio to 3.17 by December 31, 2023. Despite this decrease, the ratio remained above 1, indicating that IQVIA Holdings Inc still generated sufficient operating income to cover its interest expenses.
By December 31, 2024, the interest coverage ratio had improved to 3.50, although slightly lower than the previous year. Overall, the improving trend in IQVIA Holdings Inc's interest coverage ratio signifies its strengthening financial position and ability to manage its interest obligations effectively.