IQVIA Holdings Inc (IQV)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.49 | 0.50 | 0.49 | 0.50 | 0.50 |
| Debt-to-capital ratio | 0.68 | 0.69 | 0.67 | 0.67 | 0.66 |
| Debt-to-equity ratio | 2.12 | 2.18 | 1.99 | 2.06 | 1.92 |
| Financial leverage ratio | 4.37 | 4.39 | 4.09 | 4.09 | 3.87 |
The solvency ratios of IQVIA Holdings Inc over the past five years indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a slight increase from 0.49 in 2021 to 0.51 in 2023, suggesting that slightly more than half of the company's assets are financed by debt. The debt-to-capital ratio has remained relatively stable, hovering around 0.68 to 0.69, demonstrating that about 69% of the company's capital structure is represented by debt.
The debt-to-equity ratio has shown an increasing trend from 1.94 in 2019 to 2.24 in 2023, indicating that the company has been increasingly reliant on debt financing compared to equity. This could potentially signal higher financial risk, as a higher debt-to-equity ratio implies a greater proportion of debt in the company's capital structure.
The financial leverage ratio has also increased over the years, from 3.87 in 2019 to 4.37 in 2023, indicating that the company is utilizing more debt to finance its operations. A higher financial leverage ratio suggests that the company has a higher level of financial risk and may be more vulnerable to economic downturns or fluctuations in interest rates.
Overall, the solvency ratios of IQVIA Holdings Inc suggest a growing reliance on debt financing, which could potentially impact the company's financial stability and flexibility. It is important for investors and stakeholders to closely monitor these ratios to assess the company's ability to manage its debt obligations and sustain long-term growth.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 3.17 | 4.25 | 4.01 | 1.84 | 1.69 |
The interest coverage ratio of IQVIA Holdings Inc has shown fluctuations over the past five years. The interest coverage ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher ratio indicates a better ability to cover interest expenses.
In 2023, the interest coverage ratio was 3.24, reflecting a decrease compared to the previous year, where it was 4.50. Despite the decrease, the company still demonstrated an ability to cover its interest expenses with its EBIT.
Looking back further, in 2021, the interest coverage ratio was 3.85, which was an improvement from 2020, where it was 1.93. This indicates that the company improved its ability to cover interest expenses in 2021.
In 2019, the interest coverage ratio was 1.92, which was similar to the ratio in 2020. This level indicates that the company's EBIT was just sufficient to cover its interest expenses in those years.
Overall, while there have been fluctuations in IQVIA Holdings Inc's interest coverage ratio over the years, the company has generally maintained a level above 1, which suggests it has been able to meet its interest obligations with its earnings.