IQVIA Holdings Inc (IQV)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.48 | 0.45 | 0.46 | 0.48 | 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 |
| Debt-to-capital ratio | 0.68 | 0.64 | 0.64 | 0.67 | 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 |
| Debt-to-equity ratio | 2.12 | 1.76 | 1.80 | 2.02 | 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 |
| 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 |
The solvency ratios of IQVIA Holdings Inc indicate its ability to meet its long-term debt obligations and sustain its operations in the long run.
1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets financed by debt. Over the period from March 31, 2020, to December 31, 2024, IQVIA's debt-to-assets ratio decreased slightly from 0.52 to 0.48, suggesting a relatively stable financial position and prudent management of debt levels.
2. Debt-to-capital ratio: The debt-to-capital ratio reflects the percentage of the company's capital that is financed through debt. IQVIA's ratio fluctuated between 0.64 and 0.70 during the same period. The increase in the ratio towards the later dates could indicate a higher reliance on debt for capital, which may increase financial risk.
3. Debt-to-equity ratio: This ratio measures the extent to which the company's operations are funded by debt relative to shareholders' equity. IQVIA's debt-to-equity ratio decreased from 2.15 to 1.80 between March 31, 2020, and June 30, 2024, indicating a decrease in the company's reliance on debt financing compared to equity financing.
4. Financial leverage ratio: The financial leverage ratio indicates the company's ability to meet its financial obligations through debt financing. IQVIA's ratio varied from 3.90 to 4.56 during the period. The fluctuations in this ratio suggest changes in the company's capital structure and its level of financial risk.
Overall, IQVIA Holdings Inc has maintained relatively stable solvency ratios over the analyzed period, with fluctuations observed in certain ratios, reflecting the company's strategic decisions regarding debt management and capital structure. It is important for investors and stakeholders to monitor these ratios to assess the company's long-term financial health and risk profile.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Based on the provided data, IQVIA Holdings Inc's interest coverage ratio has shown a generally improving trend over the years. The interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt.
The interest coverage ratio for IQVIA Holdings Inc was 1.69 as of March 31, 2020, indicating that the company's operating income was 1.69 times its interest expenses. The ratio improved to 4.51 as of March 31, 2022, reached its peak at 4.84 as of September 30, 2022, and remained relatively stable around 3.00 - 4.00 thereafter.
A higher interest coverage ratio typically suggests that the company is more capable of meeting its interest obligations using its operating income. This improvement in the interest coverage ratio indicates that IQVIA Holdings Inc has been able to generate more operating income relative to its interest expenses, which can be a positive indicator of financial health and ability to service its debt obligations.