Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Statement of Comprehensive Income
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Total Asset Turnover since 2013
- Price to Sales (P/S) since 2013
- Analysis of Debt
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Solvency Ratios (Summary)
IQVIA Holdings Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Debt to Equity Ratios
- The debt to equity ratio exhibited a general upward trend from early 2019 through mid-2022, increasing from 1.71 in March 2019 to a peak of 2.39 by June 2022. This was followed by a slight decline but remained elevated around the 2.3 to 2.4 range through to September 2023. When including operating lease liabilities, a similar pattern emerged, with slightly higher ratios overall. This indicates a gradual increase in the company's leverage over the period with a stabilization at higher levels in recent quarters.
- Debt to Capital Ratios
- Debt to capital ratios moved from 0.63 in early 2019 up to approximately 0.7 by late 2022 and into 2023. Ratios including operating lease liabilities consistently tracked just marginally higher than those excluding such liabilities. The trend suggests a modest rise in the proportion of debt within the company’s capital structure, stabilizing near 70% in the latest quarters.
- Debt to Assets Ratios
- The debt to assets ratios, both excluding and including operating lease liabilities, showed a gradual increase from approximately 0.49 in early 2019 to about 0.52 to 0.54 by mid-2023. This reflects a slow but steady growth in leverage relative to total assets, with lease obligations contributing slightly to the total debt burden.
- Financial Leverage
- Financial leverage rose steadily from 3.49 in the first quarter of 2019 to a peak of 4.56 in mid-2022, before decreasing slightly to around 4.47 by the third quarter of 2023. The increasing leverage indicates the company took on additional debt financing relative to equity, with some relief in the last reported periods.
- Interest Coverage Ratio
- The interest coverage ratio showed significant improvement over the analyzed timeframe. Initially fluctuating around 1.8 in 2019 and early 2020, it improved markedly from 2.3 in early 2021 to highs over 4.8 in late 2022. However, this ratio declined somewhat in 2023, dropping to about 3.2 by the third quarter. This suggests enhanced earnings ability to cover interest expense through 2021-2022, followed by a modest reduction in coverage in more recent quarters.
- Overall Analysis
- Over the period studied, the company increased its leverage, as evidenced by rising debt to equity, debt to capital, debt to assets, and financial leverage ratios. The elevated leverage levels have remained relatively stable since mid-2022. Meanwhile, the interest coverage ratio improved considerably after early 2020, indicating stronger operational earnings relative to interest expense, although some softness has emerged in 2023. These patterns point to a strategic use of debt financing accompanied by improved ability to service debt, but recent signal of reduced margin in interest coverage may warrant monitoring.
Debt Ratios
Coverage Ratios
Debt to Equity
IQVIA Holdings Inc., debt to equity calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||||||
| Long-term debt, less current portion | |||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||
| Equity attributable to IQVIA Holdings Inc.’s stockholders | |||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | |||||||||||||||||||||||||
| Amgen Inc. | |||||||||||||||||||||||||
| Bristol-Myers Squibb Co. | |||||||||||||||||||||||||
| Danaher Corp. | |||||||||||||||||||||||||
| Eli Lilly & Co. | |||||||||||||||||||||||||
| Gilead Sciences Inc. | |||||||||||||||||||||||||
| Johnson & Johnson | |||||||||||||||||||||||||
| Merck & Co. Inc. | |||||||||||||||||||||||||
| Pfizer Inc. | |||||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | |||||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | |||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Debt to equity = Total debt ÷ Equity attributable to IQVIA Holdings Inc.’s stockholders
= ÷ =
2 Click competitor name to see calculations.
- Total debt
-
The total debt exhibited a generally upward trend over the observed periods. Starting at approximately $11,287 million in the first quarter of 2019, it increased steadily each quarter, reaching a peak around $13,777 million in the second quarter of 2023. There were minor fluctuations, including a slight decline between the third and fourth quarters of 2022 and again a slight decrease in the third quarter of 2023, but overall, the debt level increased by about 20% over the nearly five-year span.
- Equity attributable to IQVIA Holdings Inc.’s stockholders
-
Equity showed a declining tendency from early 2019 through mid-2022. Beginning near $6,615 million in the first quarter of 2019, equity fell progressively with some periods of stabilization, reaching a low point near $5,352 million in the second quarter of 2022. Subsequently, equity values recovered somewhat in the following quarters, ending at approximately $5,805 million by the third quarter of 2023. Despite this recovery, the equity at the end of the period remained below the initial levels observed in 2019.
- Debt to equity ratio
-
The debt to equity ratio increased notably during the period, indicating a growing reliance on debt relative to equity. It started at 1.71 in early 2019 and rose steadily through 2020, surpassing 2.0 in early 2020. The ratio peaked at around 2.39 in the second quarter of 2022, reflecting the period of lowest equity and relatively high debt. Although the ratio declined slightly afterward, it remained elevated above 2.0, finishing near 2.35 by the third quarter of 2023. This trend highlights an increasing leverage profile over the time frame analyzed.
Debt to Equity (including Operating Lease Liability)
IQVIA Holdings Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||||||
| Long-term debt, less current portion | |||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||
| Long-term operating lease liabilities | |||||||||||||||||||||||||
| Total debt (including operating lease liability) | |||||||||||||||||||||||||
| Equity attributable to IQVIA Holdings Inc.’s stockholders | |||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity attributable to IQVIA Holdings Inc.’s stockholders
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt shows a generally increasing trend from March 31, 2019, through June 30, 2023, starting at $11,688 million and rising to $13,848 million. The increase is relatively steady with minor fluctuations, peaking at $14,019 million in September 2023 before a slight decrease. This indicates a consistent accumulation of financial obligations over the analyzed period.
- Equity Attributable to IQVIA Holdings Inc.’s Stockholders
- Equity exhibits a declining trend from $6,615 million in March 2019 to a low of $5,347 million in June 2022, followed by some recovery reaching $5,805 million in September 2023. Despite this partial recovery, overall equity remains below initial levels, reflecting a decrease in net asset value attributable to shareholders over the period with some recent stabilization.
- Debt to Equity Ratio (including operating lease liability)
- The debt to equity ratio has increased notably from 1.77 in March 2019 to values exceeding 2.3 in recent periods, reaching 2.39 in September 2023. This pattern indicates a growing reliance on debt financing relative to shareholder equity. The ratio shows an upward trajectory particularly from early 2020 onwards, suggesting leveraged capital structure and potential increased financial risk.
- Summary of Trends
- Overall, the financial data reflect a strategy or circumstance characterized by increasing debt levels combined with declining or stagnating equity. The rising debt to equity ratio indicates enhanced leverage, which may imply higher financial risk but also potential for growth if debt is effectively managed. The partial recovery of equity in the last year suggests some improvement in net asset position, though it has yet to return to earlier levels. The consistent escalation of total debt underscores the importance of monitoring liquidity and solvency metrics to assess ongoing financial health.
Debt to Capital
IQVIA Holdings Inc., debt to capital calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||||||
| Long-term debt, less current portion | |||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||
| Equity attributable to IQVIA Holdings Inc.’s stockholders | |||||||||||||||||||||||||
| Total capital | |||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | |||||||||||||||||||||||||
| Amgen Inc. | |||||||||||||||||||||||||
| Bristol-Myers Squibb Co. | |||||||||||||||||||||||||
| Danaher Corp. | |||||||||||||||||||||||||
| Eli Lilly & Co. | |||||||||||||||||||||||||
| Gilead Sciences Inc. | |||||||||||||||||||||||||
| Johnson & Johnson | |||||||||||||||||||||||||
| Merck & Co. Inc. | |||||||||||||||||||||||||
| Pfizer Inc. | |||||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | |||||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | |||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibits a gradual upward trajectory over the observed periods. Starting at approximately 11,287 million USD at the end of March 2019, debt increased steadily each quarter, with minor fluctuations. By the end of March 2023, the total debt had risen to around 13,631 million USD, marking an overall increase of roughly 20.8% over the four-year span.
- Total Capital
- Total capital remained relatively stable with modest fluctuations throughout the time frame. It began near 17,902 million USD in Q1 2019, experienced slight declines and recoveries, and reached approximately 19,436 million USD at the close of Q1 2023. This reflects a moderate increase of about 8.5% over the period. Notable is the variability within the mid-2022 quarters, where capital dipped before recovering towards the end of the year and early 2023.
- Debt to Capital Ratio
- The debt-to-capital ratio showed a consistent pattern, trending upwards. It started around 0.63 in Q1 2019 and steadily increased, peaking at 0.71 in mid-2023 before slightly moderating to 0.70 by the latest quarter. This rising ratio indicates a growing reliance on debt relative to the firm’s capital base, reflecting a gradual shift in financial leverage over the period.
- Overall Analysis
- The data reveal a clear pattern of incremental increase in total debt accompanied by a somewhat steadier total capital base. The rising debt-to-capital ratio suggests the company has been progressively increasing its financial leverage. Despite the fluctuations in total capital, the company appears to have sustained relatively stable capital levels while incrementally expanding debt, which may imply strategic use of borrowings potentially to finance growth or operational requirements. The moderate increase in total capital alongside rising debt highlights a balanced but cautious approach to capital structure evolution.
Debt to Capital (including Operating Lease Liability)
IQVIA Holdings Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||||||
| Long-term debt, less current portion | |||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||
| Long-term operating lease liabilities | |||||||||||||||||||||||||
| Total debt (including operating lease liability) | |||||||||||||||||||||||||
| Equity attributable to IQVIA Holdings Inc.’s stockholders | |||||||||||||||||||||||||
| Total capital (including operating lease liability) | |||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
-
The total debt exhibited a gradual upward trend from March 2019 through December 2020, increasing from approximately $11.7 billion to $12.9 billion. This growth reflects a steady accumulation of liabilities during this period. Subsequently, the debt level displayed some fluctuations with minor decreases observed in late 2021 and late 2022, but the overall directional movement remained upward. By September 2023, total debt peaked around $14.0 billion, indicating continued leverage expansion despite intermittent decreases.
- Total Capital (including operating lease liability)
-
Total capital showed relative stability with modest variations across the reported quarters. Beginning near $18.3 billion in early 2019, the figure experienced slight declines and recoveries over time. Notably, total capital peaked close to $19.4 billion by mid-2023, denoting a slow but consistent growth trend overall. The fluctuations within these 18 quarters suggest adjustments in the capital structure, but no abrupt changes were apparent.
- Debt to Capital Ratio (including operating lease liability)
-
The debt to capital ratio generally increased from 0.64 in early 2019 to a peak of 0.71 around mid-2022 and mid-2023. This indicates a gradual rise in leverage, with debt representing a larger proportion of total capital over time. Although minor oscillations occurred, the ratio remained predominantly within the 0.64 to 0.71 range, reflecting a moderately stable but upward trend in financial leverage.
- Summary
-
Overall, the financial data reveals a pattern of increasing total debt and a mild growth in total capital, resulting in a higher debt to capital ratio throughout the period. This suggests a strategic preference or necessity towards greater reliance on debt financing. While total capital remained relatively stable with only moderate changes, the incremental rise in leverage calls for attention to potential impacts on financial risk and cost of capital. The absence of sharp fluctuations implies controlled management of debt levels, balancing growth objectives with financial stability.
Debt to Assets
IQVIA Holdings Inc., debt to assets calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||||||
| Long-term debt, less current portion | |||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | |||||||||||||||||||||||||
| Amgen Inc. | |||||||||||||||||||||||||
| Bristol-Myers Squibb Co. | |||||||||||||||||||||||||
| Danaher Corp. | |||||||||||||||||||||||||
| Eli Lilly & Co. | |||||||||||||||||||||||||
| Gilead Sciences Inc. | |||||||||||||||||||||||||
| Johnson & Johnson | |||||||||||||||||||||||||
| Merck & Co. Inc. | |||||||||||||||||||||||||
| Pfizer Inc. | |||||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | |||||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | |||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
-
Total debt exhibited a general upward trend over the analyzed periods. Starting at 11,287 million US dollars in March 2019, total debt increased gradually to reach 12,533 million by December 2020. This rise continued more noticeably in 2022 and 2023, culminating in a peak of 13,777 million in June 2023, before a slight decline to 13,631 million in September 2023.
- Total Assets
-
Total assets remained relatively stable but showed a modest increasing trajectory across the timeframe. Beginning at 23,109 million US dollars in March 2019, assets fluctuated around the 23,000 to 24,000 million range until late 2020. From early 2021 onward, assets progressively increased, reaching a high of 26,036 million in September 2023. This reflects a moderate growth in asset base over the period.
- Debt to Assets Ratio
-
The debt to assets ratio consistently hovered around the 0.49 to 0.53 range throughout the timeline, indicating a relatively stable leverage profile. The ratio started at 0.49 in March 2019, experienced a gradual increase peaking at approximately 0.52 in mid-2020. Following a slight dip to 0.49 by December 2021, the ratio gradually increased again reaching 0.53 in June 2023 before a marginal decrease to 0.52 in the last period.
This relative stability in the debt to assets ratio, despite rising total debt and total assets, suggests the company maintained its leverage proportionate to its asset growth, implying a balanced approach to financing over the observed periods.
Debt to Assets (including Operating Lease Liability)
IQVIA Holdings Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||||||
| Long-term debt, less current portion | |||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||
| Long-term operating lease liabilities | |||||||||||||||||||||||||
| Total debt (including operating lease liability) | |||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt exhibits a gradual upward trend over the entire period. Beginning at approximately $11.7 billion at the end of March 2019, it incrementally increased to about $13.8 billion by September 2023. Notable rises are observed in the quarters ending March 2020 and thereafter in early 2023, indicating periods of additional borrowing or lease liabilities adjustments.
- Total Assets
- Total assets have shown a generally positive trajectory from March 2019 through September 2023. Starting near $23.1 billion, the asset base recovered from slight fluctuations around 2019 and 2020, ultimately reaching approximately $26.0 billion by the latest quarter. This suggests moderate growth in asset accumulation or valuation over the time frame analyzed.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The debt to assets ratio demonstrates relative stability with minor oscillations within a narrow band between 0.50 and 0.54. The ratio increased slightly during the early 2020 period, reflecting the simultaneous rise in debt compared to assets, but subsequently decreased and stabilized around 0.51-0.53 in subsequent years. This stability suggests the company has maintained a consistent leverage position relative to its asset base throughout the observed quarters.
Financial Leverage
IQVIA Holdings Inc., financial leverage calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||
| Equity attributable to IQVIA Holdings Inc.’s stockholders | |||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | |||||||||||||||||||||||||
| Amgen Inc. | |||||||||||||||||||||||||
| Bristol-Myers Squibb Co. | |||||||||||||||||||||||||
| Danaher Corp. | |||||||||||||||||||||||||
| Eli Lilly & Co. | |||||||||||||||||||||||||
| Gilead Sciences Inc. | |||||||||||||||||||||||||
| Johnson & Johnson | |||||||||||||||||||||||||
| Merck & Co. Inc. | |||||||||||||||||||||||||
| Pfizer Inc. | |||||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | |||||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | |||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Financial leverage = Total assets ÷ Equity attributable to IQVIA Holdings Inc.’s stockholders
= ÷ =
2 Click competitor name to see calculations.
- Total Assets
- The total assets showed relative stability between March 2019 and June 2020, fluctuating slightly around the $23 billion mark. From the third quarter of 2020 onward, a consistent upward trend is observed, with total assets increasing from $23.8 billion in September 2020 to approximately $26 billion by September 2023. This growth suggests a steady expansion of the company's asset base over recent years.
- Equity Attributable to Stockholders
- Equity attributable to stockholders declined noticeably from $6.6 billion in March 2019 to around $5.5 billion by March 2020, indicating a reduction in net assets held by shareholders during this period. Following this, equity experienced mild fluctuations but remained generally lower than the initial 2019 level. A sharp dip occurred again in mid-2022, reaching the lowest point around $5.3 billion, before recovering moderately to about $5.8 billion by the third quarter of 2023. Overall, equity demonstrates volatility without a clear upward or downward long-term trend.
- Financial Leverage Ratio
- The financial leverage ratio, defined as the ratio of total assets to equity, showed a gradual increase from 3.49 in March 2019 to a peak of 4.56 in mid-2022. This indicates a rising use of debt or liabilities relative to equity in the company's capital structure. Post mid-2022, the ratio slightly decreased but remained elevated around 4.4 to 4.5, suggesting that the company has maintained a higher leverage level compared to earlier periods. The increasing leverage trend corresponds with the relative stability or decline in equity alongside the growth in total assets.
- Summary
- Overall, the company’s asset base has grown steadily over the examined period, while equity levels have been more volatile and generally declined from early 2019 levels. The rising financial leverage ratio indicates an increasing reliance on debt financing or liabilities relative to equity, reflecting a shift toward a more leveraged capital structure. This combination of growing assets with relatively stable or declining equity suggests careful monitoring of financial risk and capital management strategies is warranted going forward.
Interest Coverage
IQVIA Holdings Inc., interest coverage calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income (loss) attributable to IQVIA Holdings Inc. | |||||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | |||||||||||||||||||||||||
| Add: Income tax expense | |||||||||||||||||||||||||
| Add: Interest expense | |||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | |||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Interest coverage1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||
| Amgen Inc. | |||||||||||||||||||||||||
| Danaher Corp. | |||||||||||||||||||||||||
| Gilead Sciences Inc. | |||||||||||||||||||||||||
| Johnson & Johnson | |||||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | |||||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | |||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q3 2023 Calculation
Interest coverage
= (EBITQ3 2023
+ EBITQ2 2023
+ EBITQ1 2023
+ EBITQ4 2022)
÷ (Interest expenseQ3 2023
+ Interest expenseQ2 2023
+ Interest expenseQ1 2023
+ Interest expenseQ4 2022)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT values demonstrate variability over the analyzed quarters, with a general trend of recovery and growth following a significant decline in mid-2020. Initially, EBIT fluctuated around the 180 to 220 million US$ range through 2019, before dropping sharply to 82 million US$ in the second quarter of 2020. From that low point, a steady increase is observed, reaching a peak of 501 million US$ in the first quarter of 2023, indicating robust operational improvement and possibly increased profitability or revenue growth in recent periods.
- Interest expense
- Interest expenses maintained relative stability during 2019 and early 2020, mostly fluctuating between 100 and 114 million US$. From mid-2022 onwards, there is a notable upward trend in interest costs, climbing from 94 million US$ up to 181 million US$ by the third quarter of 2023. This increase suggests either rising debt levels or higher interest rates impacting the company's borrowing costs over the last several quarters.
- Interest coverage ratio
- The interest coverage ratio starts around 1.8 in early 2019 and remains fairly steady through 2019 and early 2020, dipping slightly during the mid-2020 quarter when EBIT was at its lowest. Afterwards, the ratio improves considerably, peaking at 4.84 in the third quarter of 2022, reflecting strong EBIT growth relative to interest expenses. However, from late 2022 into 2023, the interest coverage ratio declines gradually to 3.21 by the third quarter of 2023, a trend attributable to increasing interest expenses outpacing EBIT growth. Despite this decline, the ratio remains above pre-pandemic levels, indicating a relatively comfortable ability to cover interest obligations.
- Summary
- Overall, the data reveals a company that experienced a significant EBIT downturn in early 2020 but embarked on a sustained recovery through 2021 and 2022, achieving higher earnings than before. The increase in interest expenses in recent quarters poses some concern, as it has caused a decline in the interest coverage ratio, though the company’s EBIT growth has generally maintained adequate coverage of interest costs. The trends suggest operational strength offsetting the higher financial charges, but attention to managing rising interest expenses will be important going forward.