IQVIA Holdings Inc. (NYSE:IQV)

Debt to Equity Ratio

The debt to equity ratio demonstrates a general upward trend from March 2018 through June 2023, starting at 1.27 and increasing to approximately 2.35. The ratio peaked in mid-2022 at 2.4 and experienced minor fluctuations thereafter, suggesting an increased reliance on debt financing relative to equity over the period. A noticeable increase occurred in early 2020, likely reflecting shifts related to economic conditions during that period.

Debt to Equity Ratio (Including Operating Lease Liability)

When including operating lease liabilities, the debt to equity ratio follows a similar trend to the standard ratio but at slightly higher levels throughout the periods. It rose from 1.27 in March 2018 to around 2.39 in September 2023, also peaking in mid-2022. This parallel movement indicates leasing obligations contribute consistently to overall leverage measures.

Debt to Capital Ratio

The debt to capital ratio increased steadily from 0.56 in March 2018 to approximately 0.70 by mid-2023. The gradual rise reflects a growing proportion of debt within the company's total capital structure. The ratio showed stability in its increments, with only modest variation quarter to quarter, indicating a measured increase in leverage relative to capital.

Debt to Capital Ratio (Including Operating Lease Liability)

This ratio mirrors the trend of the debt to capital ratio, consistently marginally higher due to the addition of operating lease liabilities. It relocated from 0.56 initially to around 0.70 by the latest period, confirming that leasing commitments form a stable part of the company's capital base over time.

Debt to Assets Ratio

The debt to assets ratio displayed a gradual increase from 0.45 in early 2018 to levels near 0.52-0.53 by 2023, with some quarter-to-quarter variability. This trend indicates a rising share of total assets funded through debt, suggesting growing financial leverage relative to the asset base. The ratio reached its highest points around mid-2020 and mid-2023, coinciding with other debt metric peaks.

Debt to Assets Ratio (Including Operating Lease Liability)

Including operating lease liabilities, this ratio remained consistently above the base debt to assets ratio by a small margin. It increased from 0.45 to around 0.53, confirming that lease obligations contribute a stable supplementary layer of liabilities impacting asset financing.

Financial Leverage

Financial leverage rose notably from 2.83 in March 2018 to levels peaking near 4.56 in mid-2022, with some decline and moderate fluctuations thereafter to around 4.47 by the last reported period. This increasing trend reflects the augmented use of debt relative to equity, aligning with earlier debt ratio patterns. The highest leverage occurred during 2022, potentially reflecting strategic financial decisions or external economic influences during that period.

Interest Coverage Ratio

The interest coverage ratio exhibits a general upward trajectory since the earliest recorded value in September 2018, improving from 1.83 to a peak of 4.84 in late 2022 before a moderate decline to 3.21 by September 2023. This improvement signifies enhanced ability to meet interest obligations over time, with a temporary dip towards recent quarters that may indicate rising interest expense relative to earnings or lower earnings.

Total Debt

The total debt shows a generally increasing trend over the entire period analyzed. Starting from approximately 10.4 billion US dollars in March 2018, the total debt gradually increased, reaching a peak of about 13.8 billion US dollars in June 2023 before slightly declining to 13.6 billion US dollars by September 2023. The rise in total debt is relatively steady, with notable incremental increases particularly from 2022 onwards.

Equity Attributable to IQVIA Holdings Inc.’s Stockholders

The equity attributable to the stockholders displays a declining tendency from March 2018 to March 2022, falling from roughly 8.2 billion US dollars to just under 5.4 billion US dollars. After this period, the equity values stabilize with minor fluctuations, maintaining a range close to 5.7 billion US dollars through to September 2023. The initial sustained decrease indicates a reduction in shareholders’ equity during those years, followed by a period of relative stability.

Debt to Equity Ratio

The debt to equity ratio indicates a clear upward trend over time, reflecting increasing leverage. Beginning at 1.27 in the first quarter of 2018, the ratio climbed consistently, surpassing 2.0 by the end of 2019. It fluctuates slightly but remains elevated, reaching a high of 2.40 in June 2023 and ending at 2.35 in September 2023. This escalation in leverage corresponds with the increase in total debt alongside the reduction in equity until early 2022, demonstrating a reliance on debt financing relative to equity.

Overall Analysis

The financial data suggest a trajectory of rising indebtedness relative to shareholders' equity over the analyzed timeframe. The steady increase in total debt combined with declining and subsequently stable equity levels has led to a significant increase in the debt to equity ratio. This pattern might indicate strategic borrowing decisions, potentially to finance growth or operational needs, but it also implies heightened financial risk due to greater leverage. The recent stabilization in equity levels and slight tapering in the increase of total debt could suggest some level of balance being restored in the company's capital structure towards the most recent quarters.

Total Debt (including operating lease liability)

The total debt shows a consistent upward trend over the periods analyzed. Starting at 10,446 million USD in March 2018, it incrementally increased to 13,848 million USD by September 2023. There are minor fluctuations, but the overall trajectory is an increase in debt levels, with notable rises especially in the years 2020 and 2023.

Equity Attributable to IQVIA Holdings Inc.’s Stockholders

The equity attributable to stockholders exhibits a generally declining trend from March 2018 through mid-2022, falling from 8,196 million USD to a low of 5,347 million USD in June 2022. There are small recoveries afterward, rising modestly to 5,805 million USD by September 2023. This pattern indicates increasing pressure on equity, reflecting either losses, share buybacks, or other equity-reducing activities during the period.

Debt to Equity Ratio (Including Operating Lease Liability)

The debt to equity ratio increases substantially over the examined timeframe, starting at 1.27 in March 2018 and reaching over 2.3 by the latest period in September 2023. This ratio surpassed the 2.0 mark around December 2019, indicating that total debt is more than double the equity. The increasing ratio suggests a reliance on debt financing has intensified, reflecting higher financial leverage and potentially increased financial risk.

Summary and Insights

The data indicates a steady increase in total debt alongside a shrinking equity base over much of the timeframe, leading to a significant rise in the debt to equity ratio. This pattern points to growing leverage and a shift in the company's capital structure towards higher indebtedness relative to equity. The implications include a potential increase in financial risk and interest obligations, though this may also reflect strategic investment or capital allocation decisions. The modest recovery in equity towards the latest quarters suggests some stabilization, but the debt level remains elevated. Close monitoring of leverage and liquidity positions is advisable given this trend.

Total Debt

The total debt exhibits a general upward trajectory over the examined periods. Starting at approximately $10.4 billion in March 2018, the debt increased steadily, reaching around $13.2 billion by September 2023. There are increments each quarter with minor fluctuations, indicating ongoing leverage expansion. Notable increases occurred during mid-2023, where debt rose from $13.18 billion in March 2023 to $13.77 billion by June 2023, followed by a slight decrease to $13.63 billion in September 2023.

Total Capital

Total capital shows moderate variability throughout the timeline, beginning at roughly $18.6 billion in March 2018 and moving within a range of approximately $17.6 billion to $19.5 billion during the most recent quarters. The capital fluctuates but generally remains stable with slight increments toward the end of the period, peaking around $19.5 billion in June 2023 before a marginal downturn to $19.4 billion in September 2023. The data indicates that capital levels have not grown as markedly as total debt.

Debt to Capital Ratio

The debt to capital ratio demonstrates a clear upward trend over the quarters analyzed. Beginning at 0.56 in March 2018, the ratio increased steadily to around 0.70 by the last reported quarter in September 2023. This indicates a gradual increase in the proportion of debt relative to total capital. The ratio remained relatively stable near 0.68 throughout 2020 and 2021 but escalated again during 2022 and into 2023, reaching as high as 0.71 in June 2023 before a slight decline to 0.70. This trend reflects a growing reliance on debt financing relative to equity or other capital sources over time.

Total Debt (including operating lease liability)

The total debt shows a gradual upward trend over the analyzed period from March 31, 2018, to September 30, 2023. Starting at 10,446 million USD, the debt increased steadily with minor fluctuations, reaching a peak of 14,019 million USD in June 30, 2023 before slightly declining to 13,848 million USD by the end of the third quarter of 2023. This upward trajectory indicates a consistent increase in debt over the years.

Total Capital (including operating lease liability)

Total capital experienced some fluctuations but remained relatively stable throughout the period. Initially reported at 18,642 million USD in March 2018, it decreased to a low of around 17,721 million USD at the end of 2018, then generally increased, reaching a high of 19,767 million USD by June 30, 2023 before a marginal decrease to 19,653 million USD at September 30, 2023. The capital values suggest moderate variability but trend towards gradual growth in the latter years.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio shows a clear increasing trend over the period, moving from 0.56 in March 2018 to fluctuating around 0.69 to 0.71 in the recent quarters of 2022 and 2023. This ratio increased steadily through 2018 and 2019, peaking close to 0.70 in later periods. The rise in this ratio reflects the increasing proportion of debt within the company’s capital structure, indicating a growing reliance on debt financing relative to overall capital.

Overall Analysis

The financial data indicates a steady increase in total debt alongside relatively stable total capital, resulting in a rising debt to capital ratio over the reported quarters. This suggests that the company has increasingly leveraged its balance sheet by taking on more debt compared to its overall capital base. While the total capital's slight upward trend may indicate reinvestment or retained earnings, the rising debt component points toward a higher financial risk profile due to greater indebtedness. Careful monitoring of this trend is advised to ensure sustainable capital structure management.

The financial data reveals several notable trends regarding the company’s leverage and asset base over the examined periods. Total debt displayed a generally upward trajectory, increasing from approximately $10.4 billion as of March 31, 2018, to a peak of about $13.8 billion in June 30, 2023, followed by a slight decrease to $13.6 billion by September 30, 2023. This steady increase in indebtedness suggests a consistent reliance on debt financing over the years.

Total assets exhibited a modest increase overall, beginning at around $23.2 billion in March 2018 and ending at nearly $26.0 billion by the third quarter of 2023. Despite some fluctuations, the asset base expanded gradually, indicating growth and potential reinvestment within the company.

The ratio of debt to assets fluctuated within a relatively narrow range between 0.45 and 0.53. Initially positioned at 0.45, this leverage ratio increased steadily, reaching its highest levels near 0.53 during mid-2023 before slightly easing back to 0.52. This pattern signifies a gradual increase in financial leverage, indicating a rising proportion of debt relative to total assets, which may imply heightened financial risk but also potential for leveraging growth opportunities.

Total Debt

Displayed a steady upward trend over the period, increasing by roughly 30% from early 2018 to mid-2023, with a minor decline towards the latest quarter.

Total Assets

Showed moderate growth overall with some fluctuations but maintained a consistent upward trajectory, increasing approximately 12% from 2018 to late 2023.

Debt to Assets Ratio

Persistently remained near the 0.5 mark, indicating that about half of the company's assets are financed through debt. A gradual increase in this ratio points to growing leverage and possibly increased financial risk.

In summary, the company's financial profile over these quarterly periods is characterized by an expanding asset base accompanied by rising debt levels, resulting in a moderately increasing debt-to-assets ratio. This suggests a strategic approach to funding growth or operations through debt, warranting careful monitoring of leverage impact on financial stability.

Total Debt (including operating lease liability)

The total debt increased overall across the observed periods, starting at $10,446 million in March 2018 and reaching a peak near $14,019 million in June 2023, before a slight decrease to $13,848 million in September 2023. The progression shows a steady upward trend with minor fluctuations, indicating a gradual rise in leverage or borrowing over time.

Total Assets

Total assets exhibited a relatively stable pattern with moderate growth. Beginning at $23,235 million in March 2018, assets fluctuated within a somewhat narrow range, peaking around $26,036 million in June 2023 and slightly decreasing to $25,977 million by September 2023. This signifies no drastic changes in asset base but a general trend of incremental accumulation.

Debt to Assets Ratio (including operating lease liability)

The debt to assets ratio demonstrated incremental increases from 0.45 in March 2018 to values above 0.5 in subsequent years, peaking at approximately 0.54 in June 2023 before slightly declining to 0.53 in September 2023. This indicates a growing proportion of liabilities relative to assets, reflecting a consistent rise in financial leverage. Despite the upward movement, the ratio largely remained within a narrow range, signaling maintained balance between debt and asset growth.

Overall Insights

The data illustrates a consistent increase in total debt paired with modest growth in total assets, resulting in a gradually increasing debt to asset ratio over the examined timeframe. The company appears to be incrementally leveraging its asset base with additional liabilities. The stable asset values alongside rising debt suggest careful asset management amid increasing debt levels. The slight recent declines in both debt and the debt to asset ratio could indicate the beginning of deleveraging or a pause in debt accumulation.

Total assets

Total assets show a relatively stable trend throughout the analyzed quarters. From March 2018 to December 2019, total assets fluctuated slightly around the 22,000 to 23,000 million US dollar range. Beginning in 2020, there is a consistent upward trajectory, rising from 23,078 million in March 2020 to a peak of 25,337 million in December 2022. The most recent quarters of 2023 indicate a modest stabilization around 25,900 to 26,000 million. This gradual increase suggests sustained asset growth with occasional quarters of marginal decline or plateau.

Equity attributable to IQVIA Holdings Inc.’s stockholders

Equity presents a contrasting downward trend over the period. Starting at 8,196 million in March 2018, equity steadily declines in the first two years, reaching a low of 5,347 million in September 2022. The data highlights a consistent reduction in equity from 2018 through most of 2022, potentially indicating increased liabilities or share repurchases. However, slight recovery is observed in the latest quarters of 2023, with equity rising to 5,805 million by September 2023. Despite this recovery, the overall trend points to a diminished equity base relative to the total assets during the period.

Financial leverage

Financial leverage ratio reveals a clear upward trend throughout the timeframe, signaling increased reliance on debt financing. The ratio starts at 2.83 in March 2018 and increases steadily to peak around 4.56 in June 2022. Subsequently, the ratio exhibits minor fluctuations but remains elevated around 4.4 to 4.5 through the third quarter of 2023. This rising leverage corresponds with the declining equity and growing total assets, indicating that the company has been expanding its asset base primarily through increased debt obligations.

Earnings Before Interest and Tax (EBIT)

The EBIT figures demonstrate a general upward trajectory over the examined periods, with fluctuations observed in certain quarters. From March 2018 through March 2020, EBIT values fluctuated moderately within a range of 158 to 218 million US dollars, indicating relative stability with minor variations. A notable decline is evident in the second quarter of 2020, dropping to 82 million US dollars, likely reflective of external challenges impacting performance during that period. Following this dip, the EBIT recovered sharply, rising steadily through 2021 and 2022, reaching a peak of 482 million US dollars at the end of the first quarter of 2022. Although there is some variability thereafter, EBIT remained elevated compared to earlier years, maintaining levels above 400 million US dollars. This pattern suggests a strong recovery and growth phase post-2020, despite intermittent decreases in specific quarters.

Interest Expense

Interest expense values exhibit a general increasing trend throughout the time frame. Beginning in the 90s range in early 2018, interest expense increments are gradual but consistent, reaching over 100 million US dollars from around late 2019 onward. Particularly notable is the acceleration in interest costs from March 2023 to September 2023, where the expense rises sharply from 128 million to 181 million US dollars. This increase in interest expense could indicate rising debt levels or higher borrowing costs in recent quarters.

Interest Coverage Ratio

The interest coverage ratio shows notable improvement over the data period, starting around 1.8 in early 2019 and climbing progressively to peak values above 4.8 during 2022. This improvement reflects a strengthening ability to meet interest obligations from operating earnings. The highest coverage is observed in late 2022, indicating strong operational profitability relative to interest costs during this period. However, in 2023, the ratio declines from 4.25 to 3.21 despite still remaining above earlier years’ levels, signaling a slight reduction in earnings relative to interest expense, potentially related to rising interest costs or EBIT fluctuations in recent quarters.