IQVIA Holdings Inc (IQV)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.49 | 0.47 | 0.48 | 0.46 | 0.50 | 0.51 | 0.52 | 0.50 | 0.49 | 0.50 | 0.51 | 0.49 | 0.50 | 0.51 | 0.52 | 0.52 | 0.50 | 0.50 | 0.49 | 0.48 |
| Debt-to-capital ratio | 0.68 | 0.68 | 0.68 | 0.67 | 0.69 | 0.70 | 0.70 | 0.68 | 0.67 | 0.67 | 0.68 | 0.67 | 0.67 | 0.68 | 0.68 | 0.68 | 0.66 | 0.65 | 0.63 | 0.63 |
| Debt-to-equity ratio | 2.12 | 2.12 | 2.16 | 1.99 | 2.18 | 2.29 | 2.36 | 2.12 | 1.99 | 2.07 | 2.11 | 2.03 | 2.06 | 2.09 | 2.14 | 2.15 | 1.92 | 1.87 | 1.73 | 1.69 |
| Financial leverage ratio | 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 | 3.87 | 3.73 | 3.54 | 3.49 |
Based on the solvency ratios of IQVIA Holdings Inc over the past eight quarters, we can observe the following trends:
1. Debt-to-assets ratio has been relatively stable around 0.51 to 0.53, indicating that slightly over 50% of the company's assets have been financed by debt.
2. Debt-to-capital ratio has also shown consistency, hovering between 0.69 and 0.71, suggesting that approximately 70% of the company's capital structure comprises debt.
3. Debt-to-equity ratio has displayed some fluctuation but generally remained within the range of 2.13 to 2.40, revealing that IQVIA Holdings Inc has been relying heavily on debt to finance its operations, with the latest ratio at 2.40 indicating a higher level of leverage compared to previous quarters.
4. Financial leverage ratio has shown variability, fluctuating between 4.22 and 4.56. This ratio indicates the extent to which the company has utilized debt in relation to its equity, with a higher ratio suggesting higher financial risk due to increased financial leverage.
In summary, IQVIA Holdings Inc has maintained a consistent level of debt in relation to its assets and capital over the quarters, but there has been some increase in leverage as seen through the debt-to-equity and financial leverage ratios. These trends highlight the company's reliance on debt financing and its potential exposure to financial risks associated with higher leverage levels.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 1.69 | 1.73 | 1.72 | 1.77 |
IQVIA Holdings Inc's interest coverage ratio has been consistently declining over the past eight quarters, starting at 5.13 in Q3 2022 and dropping to 3.24 in Q4 2023. This indicates that the company's ability to meet its interest obligations with its earnings has weakened over time.
A decreasing interest coverage ratio may signal increased financial risk, as it suggests that the company's earnings are becoming less sufficient to cover its interest expenses. Investors and creditors may view a declining interest coverage ratio as a red flag, as it could indicate a potential inability to meet debt obligations in the future.
It is important for IQVIA Holdings Inc to closely monitor and address this trend to ensure its financial stability and ability to meet its debt obligations in a timely manner. Further analysis of the company's profitability and cash flow performance would be beneficial in understanding the factors contributing to the declining interest coverage ratio.