IQVIA Holdings Inc (IQV)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,344,000 | 2,172,000 | 2,187,000 | 2,133,000 | 2,131,000 | 1,986,000 | 1,912,000 | 1,786,000 | 1,767,000 | 1,831,000 | 1,735,000 | 1,631,000 | 1,504,000 | 1,321,000 | 1,154,000 | 917,000 | 767,000 | 676,000 | 648,000 | 750,000 |
| Interest expense (ttm) | US$ in thousands | 670,000 | 680,000 | 691,000 | 697,000 | 672,000 | 619,000 | 546,000 | 471,000 | 416,000 | 378,000 | 362,000 | 362,000 | 375,000 | 387,000 | 395,000 | 409,000 | 416,000 | 423,000 | 437,000 | 443,000 |
| Interest coverage | 3.50 | 3.19 | 3.16 | 3.06 | 3.17 | 3.21 | 3.50 | 3.79 | 4.25 | 4.84 | 4.79 | 4.51 | 4.01 | 3.41 | 2.92 | 2.24 | 1.84 | 1.60 | 1.48 | 1.69 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,344,000K ÷ $670,000K
= 3.50
IQVIA Holdings Inc's interest coverage ratio has shown a trend of improvement over the analyzed periods, indicating the company's ability to meet its interest obligations from its operating profits. The interest coverage ratio, which measures the company's ability to cover its interest expenses with its operating income, has increased from 1.69 in March 2020 to 3.50 in December 2024.
The company's interest coverage ratio crossed the critical threshold of 1.0 in March 2021, indicating that IQVIA Holdings Inc was able to cover its interest expenses with its operating income. The ratio continued to increase steadily over the following periods, reaching a peak of 4.84 in September 2022.
Although there was a slight decrease in the interest coverage ratio in the subsequent periods, the ratio remained above 3.0, reflecting the company's strong financial position and ability to comfortably cover its interest expenses. Overall, the trend of increasing interest coverage ratio demonstrates IQVIA Holdings Inc's improving financial stability and ability to service its debt obligations.
Peer comparison
Dec 31, 2024