IQVIA Holdings Inc (IQV)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 2.12 | 2.18 | 1.99 | 2.06 | 1.92 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $12,955,000K ÷ $6,112,000K
= 2.12
Based on the data provided, the debt-to-equity ratio of IQVIA Holdings Inc has shown a varying trend over the past five years. The ratio increased from 1.94 in 2019 to 2.24 in 2020, indicating a higher level of debt relative to equity in 2020. Subsequently, the ratio decreased slightly to 2.09 in 2021 before rising again to 2.01 in 2022. The most recent figure for 2023 shows a further increase to 2.24.
Overall, the debt-to-equity ratio of IQVIA Holdings Inc has been above 1 consistently over the past five years, suggesting that the company relies more on debt financing than equity financing to support its operations and growth. Investors and analysts may view a higher debt-to-equity ratio as a sign of higher financial risk, as it indicates a greater reliance on borrowed funds. Further analysis of the company's financial health and strategy would be necessary to fully assess the implications of this trend in the debt-to-equity ratio.
Peer comparison
Dec 31, 2023