IQVIA Holdings Inc (IQV)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 26,899,000 | 27,180,000 | 26,398,000 | 26,574,000 | 26,681,000 | 25,977,000 | 26,036,000 | 25,739,000 | 25,337,000 | 24,223,000 | 24,413,000 | 24,969,000 | 24,689,000 | 24,033,000 | 23,937,000 | 24,467,000 | 24,564,000 | 23,837,000 | 23,183,000 | 23,078,000 |
| 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 |
| Financial leverage ratio | 4.43 | 3.90 | 3.93 | 4.19 | 4.37 | 4.47 | 4.53 | 4.34 | 4.39 | 4.53 | 4.56 | 4.22 | 4.09 | 4.12 | 4.16 | 4.11 | 4.09 | 4.08 | 4.15 | 4.16 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $26,899,000K ÷ $6,067,000K
= 4.43
The financial leverage ratio of IQVIA Holdings Inc has shown some fluctuations over the past few years, ranging from a low of 3.90 to a high of 4.56. The financial leverage ratio measures the extent to which a company is using debt to finance its operations compared to equity. A higher ratio indicates higher reliance on debt financing, which can amplify returns but also increase financial risk.
In the case of IQVIA Holdings Inc, the trend in the financial leverage ratio has been somewhat volatile, with fluctuations observed from quarter to quarter. The ratio peaked at 4.56 in June 30, 2022, indicating a significant increase in debt relative to equity at that time. However, since then, the ratio has decreased and stabilized around the range of 4.1 to 4.4.
It is essential for investors and stakeholders to closely monitor the financial leverage ratio of a company as it can provide insights into the risk profile and financial stability of the organization. A consistent upward trend in the ratio may suggest a higher financial risk, while a downward trend may indicate a more conservative capital structure. Overall, the financial leverage ratio of IQVIA Holdings Inc has displayed fluctuations but has generally stayed within a moderate range over the periods analyzed.
Peer comparison
Dec 31, 2024