IQVIA Holdings Inc (IQV)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 26,681,000 | 25,337,000 | 24,689,000 | 24,564,000 | 23,251,000 |
| Total stockholders’ equity | US$ in thousands | 6,112,000 | 5,765,000 | 6,042,000 | 6,001,000 | 6,003,000 |
| Financial leverage ratio | 4.37 | 4.39 | 4.09 | 4.09 | 3.87 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $26,681,000K ÷ $6,112,000K
= 4.37
The financial leverage ratio of IQVIA Holdings Inc has gradually increased over the past five years, from 3.87 in 2019 to 4.37 in 2023. This indicates that the company is becoming more heavily leveraged over time. The increase in financial leverage ratio suggests that IQVIA is relying more on debt financing compared to equity financing to support its operations and growth. A higher financial leverage ratio can be a double-edged sword, as it can amplify returns when the company is performing well, but it also increases financial risk and vulnerability to economic downturns or interest rate fluctuations. It is important for IQVIA to closely monitor and manage its debt levels to ensure a balance between leveraging for growth opportunities and maintaining financial stability.
Peer comparison
Dec 31, 2023