Analysis of Debt
Total Debt (Carrying Amount)
IQVIA Holdings Inc., balance sheet: debt
US$ in millions
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).
The total carrying amount of long-term debt and finance lease liabilities exhibited a general upward trend from 2018 through 2022, increasing from 11,007 million US$ to 12,976 million US$. This represents a total growth of approximately 17.9% over the five-year period, despite a slight contraction observed in 2021.
- Long-Term Debt Dynamics
- Long-term debt, excluding the current portion, serves as the primary driver of the total liability profile. This figure rose steadily from 10,907 million US$ in 2018 to a peak of 12,384 million US$ in 2020, followed by a moderate decrease to 12,034 million US$ in 2021, and a subsequent increase to 12,595 million US$ in 2022. The fluctuations suggest periodic adjustments in borrowing or repayment strategies.
- Emergence of Finance Lease Liabilities
- Finance lease liabilities were not reported in 2018 and 2019 but became a visible component of the debt structure starting in 2020. Long-term finance lease liabilities grew consistently from 122 million US$ in 2020 to 224 million US$ in 2022. Current finance lease liabilities appeared in 2021 at 9 million US$ and adjusted to 5 million US$ in 2022, indicating a growing reliance on lease financing for assets.
- Current Debt Obligations
- The current portion of long-term debt demonstrated significant volatility. After remaining stable at 100 million US$ through 2019, it increased to 149 million US$ in 2020, dropped to 91 million US$ in 2021, and spiked to 152 million US$ in 2022. This variability reflects the shifting schedule of maturing debt obligations that must be settled within the short term.
- Aggregate Liability Trend
- The overall debt trajectory shows a consistent increase in leverage, with the most significant annual growth occurring between 2019 and 2020, where total liabilities rose by 1,010 million US$. The temporary decline in 2021 was reversed in 2022, bringing the total carrying amount to its highest level in the analyzed period.
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Total Debt (Fair Value)
| Dec 31, 2022 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Long-term debt | 12,281) |
| Finance lease liabilities | 229) |
| Total long-term debt and finance lease liabilities (fair value) | 12,510) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.96 |
Based on: 10-K (reporting date: 2022-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on long-term debt and finance lease liabilities: 4.48%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 5.63% | 425) | 24) | |
| 5.98% | 1,343) | 80) | |
| 3.45% | 314) | 11) | |
| 5.67% | 1,219) | 69) | |
| 4.20% | 1,172) | 49) | |
| 6.13% | 670) | 41) | |
| 6.48% | 860) | 56) | |
| 4.20% | 559) | 23) | |
| 5.00% | 1,100) | 55) | |
| 5.00% | 1,050) | 53) | |
| 2.88% | 450) | 13) | |
| 2.25% | 771) | 17) | |
| 2.88% | 761) | 22) | |
| 1.75% | 589) | 10) | |
| 2.25% | 964) | 22) | |
| 5.27% | 110) | 6) | |
| 5.27% | 440) | 23) | |
| 3.87% | 229) | 9) | |
| Total | 13,026) | 583) | |
| 4.48% | |||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 583 ÷ 13,026 = 4.48%