IQVIA Holdings Inc (IQV)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	2,344,000	2,131,000	1,767,000	1,504,000	767,000
Interest expense	US$ in thousands	670,000	672,000	416,000	375,000	416,000
Interest coverage		3.50	3.17	4.25	4.01	1.84

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $2,344,000K ÷ $670,000K
= 3.50

The interest coverage ratio for IQVIA Holdings Inc has shown improvement over the past five years.

As of December 31, 2020, the interest coverage ratio was 1.84, indicating that the company's operating income was almost sufficient to cover its interest expenses. However, this ratio was quite low and suggested a relatively higher financial risk.

By December 31, 2021, the interest coverage ratio had increased to 4.01, which was a positive sign as it indicated that the company's ability to cover its interest payments had improved significantly. This improvement continued in the following years, reaching 4.25 as of December 31, 2022, further enhancing the company's financial stability.

However, there was a slight dip in the interest coverage ratio to 3.17 by December 31, 2023, which could be a cause for concern as it indicated a potential decrease in the company's ability to cover its interest expenses.

By December 31, 2024, the interest coverage ratio had improved to 3.50, indicating a partial recovery from the previous year's decline. Overall, the trend in the interest coverage ratio for IQVIA Holdings Inc suggests an overall improvement in its financial health over the analyzed period, although some fluctuations were observed.