Stock Analysis on Net
Stock Analysis on Net

IQVIA Holdings Inc. (NYSE:IQV)

This company has been moved to the archive! The financial data has not been updated since November 1, 2023.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

IQVIA Holdings Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Federal and state 24 16 — 11 17
Foreign 358 293 244 248 233
Current expense 382 309 244 259 250
Federal and state (94) (106) (161) (109) (170)
Foreign (28) (40) (11) (34) (21)
Deferred benefit (122) (146) (172) (143) (191)
Income tax expense 260 163 72 116 59

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Current expense Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. IQVIA Holdings Inc. current expense increased from 2020 to 2021 and from 2021 to 2022.
Deferred benefit Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. IQVIA Holdings Inc. deferred benefit increased from 2020 to 2021 and from 2021 to 2022.
Income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. IQVIA Holdings Inc. income tax expense increased from 2020 to 2021 and from 2021 to 2022.

Effective Income Tax Rate (EITR)

IQVIA Holdings Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
United States statutory income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effective income tax rate 19.08% 14.45% 19.30% 32.95% 17.99%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. IQVIA Holdings Inc. effective income tax rate decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.

Components of Deferred Tax Assets and Liabilities

IQVIA Holdings Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net operating loss and capital loss carryforwards 145 212 231 246 244
Tax credit carryforwards 295 375 369 332 300
Accrued expenses and unearned income 90 59 54 55 70
Employee benefits 202 212 228 168 181
Lease liability 73 92 139 119 —
Foreign exchange on debt instruments — — 143 — —
U.S. interest expense limitation 30 62 75 — —
Other 52 64 64 79 51
Deferred income tax assets 887 1,076 1,303 999 846
Valuation allowance for deferred income tax assets (257) (294) (306) (266) (226)
Deferred income tax assets, net of valuation allowance 630 782 997 733 620
Amortization and depreciation (727) (898) (1,038) (1,105) (1,209)
Lease right-of-use assets (61) (81) (133) (119) —
Foreign exchange on debt instruments (125) (36) — — —
Other (63) (53) (50) (36) (38)
Deferred income tax liabilities (976) (1,068) (1,221) (1,260) (1,247)
Net deferred income tax assets (liabilities) (346) (286) (224) (527) (627)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Deferred income tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. IQVIA Holdings Inc. deferred income tax assets decreased from 2020 to 2021 and from 2021 to 2022.
Deferred income tax assets, net of valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. IQVIA Holdings Inc. deferred income tax assets, net of valuation allowance decreased from 2020 to 2021 and from 2021 to 2022.
Net deferred income tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. IQVIA Holdings Inc. net deferred income tax assets (liabilities) decreased from 2020 to 2021 and from 2021 to 2022.

Deferred Tax Assets and Liabilities, Classification

IQVIA Holdings Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Deferred income tax assets 118 124 114 119 109
Deferred income tax liabilities 464 410 338 646 736

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Deferred income tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. IQVIA Holdings Inc. deferred income tax assets increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.
Deferred income tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. IQVIA Holdings Inc. deferred income tax liabilities increased from 2020 to 2021 and from 2021 to 2022.

Adjustments to Financial Statements: Removal of Deferred Taxes

IQVIA Holdings Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported) 25,337 24,689 24,564 23,251 22,549
Less: Noncurrent deferred tax assets, net 118 124 114 119 109
Total assets (adjusted) 25,219 24,565 24,450 23,132 22,440
Adjustment to Total Liabilities
Total liabilities (as reported) 19,572 18,647 18,284 16,988 15,595
Less: Noncurrent deferred tax liabilities, net 464 410 338 646 736
Total liabilities (adjusted) 19,108 18,237 17,946 16,342 14,859
Adjustment to Equity Attributable To IQVIA Holdings Inc.’s Stockholders
Equity attributable to IQVIA Holdings Inc.’s stockholders (as reported) 5,765 6,042 6,001 6,003 6,714
Less: Net deferred tax assets (liabilities) (346) (286) (224) (527) (627)
Equity attributable to IQVIA Holdings Inc.’s stockholders (adjusted) 6,111 6,328 6,225 6,530 7,341
Adjustment to Net Income Attributable To IQVIA Holdings Inc.
Net income attributable to IQVIA Holdings Inc. (as reported) 1,091 966 279 191 259
Add: Deferred income tax expense (benefit) (122) (146) (172) (143) (191)
Net income attributable to IQVIA Holdings Inc. (adjusted) 969 820 107 48 68

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

IQVIA Holdings Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

IQVIA Holdings Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net Profit Margin
Reported net profit margin 7.57% 6.96% 2.46% 1.72% 2.49%
Adjusted net profit margin 6.72% 5.91% 0.94% 0.43% 0.65%
Total Asset Turnover
Reported total asset turnover 0.57 0.56 0.46 0.48 0.46
Adjusted total asset turnover 0.57 0.56 0.46 0.48 0.46
Financial Leverage
Reported financial leverage 4.39 4.09 4.09 3.87 3.36
Adjusted financial leverage 4.13 3.88 3.93 3.54 3.06
Return on Equity (ROE)
Reported ROE 18.92% 15.99% 4.65% 3.18% 3.86%
Adjusted ROE 15.86% 12.96% 1.72% 0.74% 0.93%
Return on Assets (ROA)
Reported ROA 4.31% 3.91% 1.14% 0.82% 1.15%
Adjusted ROA 3.84% 3.34% 0.44% 0.21% 0.30%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. IQVIA Holdings Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. IQVIA Holdings Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 IQVIA Holdings Inc. adjusted financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. IQVIA Holdings Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. IQVIA Holdings Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

IQVIA Holdings Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to IQVIA Holdings Inc. 1,091 966 279 191 259
Revenues 14,410 13,874 11,359 11,088 10,412
Profitability Ratio
Net profit margin1 7.57% 6.96% 2.46% 1.72% 2.49%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to IQVIA Holdings Inc. 969 820 107 48 68
Revenues 14,410 13,874 11,359 11,088 10,412
Profitability Ratio
Adjusted net profit margin2 6.72% 5.91% 0.94% 0.43% 0.65%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Net profit margin = 100 × Net income attributable to IQVIA Holdings Inc. ÷ Revenues
= 100 × 1,091 ÷ 14,410 = 7.57%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to IQVIA Holdings Inc. ÷ Revenues
= 100 × 969 ÷ 14,410 = 6.72%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. IQVIA Holdings Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Revenues 14,410 13,874 11,359 11,088 10,412
Total assets 25,337 24,689 24,564 23,251 22,549
Activity Ratio
Total asset turnover1 0.57 0.56 0.46 0.48 0.46
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues 14,410 13,874 11,359 11,088 10,412
Adjusted total assets 25,219 24,565 24,450 23,132 22,440
Activity Ratio
Adjusted total asset turnover2 0.57 0.56 0.46 0.48 0.46

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 14,410 ÷ 25,337 = 0.57

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 14,410 ÷ 25,219 = 0.57

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. IQVIA Holdings Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets 25,337 24,689 24,564 23,251 22,549
Equity attributable to IQVIA Holdings Inc.’s stockholders 5,765 6,042 6,001 6,003 6,714
Solvency Ratio
Financial leverage1 4.39 4.09 4.09 3.87 3.36
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 25,219 24,565 24,450 23,132 22,440
Adjusted equity attributable to IQVIA Holdings Inc.’s stockholders 6,111 6,328 6,225 6,530 7,341
Solvency Ratio
Adjusted financial leverage2 4.13 3.88 3.93 3.54 3.06

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Financial leverage = Total assets ÷ Equity attributable to IQVIA Holdings Inc.’s stockholders
= 25,337 ÷ 5,765 = 4.39

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted equity attributable to IQVIA Holdings Inc.’s stockholders
= 25,219 ÷ 6,111 = 4.13

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 IQVIA Holdings Inc. adjusted financial leverage ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to IQVIA Holdings Inc. 1,091 966 279 191 259
Equity attributable to IQVIA Holdings Inc.’s stockholders 5,765 6,042 6,001 6,003 6,714
Profitability Ratio
ROE1 18.92% 15.99% 4.65% 3.18% 3.86%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to IQVIA Holdings Inc. 969 820 107 48 68
Adjusted equity attributable to IQVIA Holdings Inc.’s stockholders 6,111 6,328 6,225 6,530 7,341
Profitability Ratio
Adjusted ROE2 15.86% 12.96% 1.72% 0.74% 0.93%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 ROE = 100 × Net income attributable to IQVIA Holdings Inc. ÷ Equity attributable to IQVIA Holdings Inc.’s stockholders
= 100 × 1,091 ÷ 5,765 = 18.92%

2 Adjusted ROE = 100 × Adjusted net income attributable to IQVIA Holdings Inc. ÷ Adjusted equity attributable to IQVIA Holdings Inc.’s stockholders
= 100 × 969 ÷ 6,111 = 15.86%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. IQVIA Holdings Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to IQVIA Holdings Inc. 1,091 966 279 191 259
Total assets 25,337 24,689 24,564 23,251 22,549
Profitability Ratio
ROA1 4.31% 3.91% 1.14% 0.82% 1.15%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to IQVIA Holdings Inc. 969 820 107 48 68
Adjusted total assets 25,219 24,565 24,450 23,132 22,440
Profitability Ratio
Adjusted ROA2 3.84% 3.34% 0.44% 0.21% 0.30%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 ROA = 100 × Net income attributable to IQVIA Holdings Inc. ÷ Total assets
= 100 × 1,091 ÷ 25,337 = 4.31%

2 Adjusted ROA = 100 × Adjusted net income attributable to IQVIA Holdings Inc. ÷ Adjusted total assets
= 100 × 969 ÷ 25,219 = 3.84%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. IQVIA Holdings Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.