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IQVIA Holdings Inc. (NYSE:IQV)

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

Common-Size Income Statement

IQVIA Holdings Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Revenues 100.00 100.00 100.00 100.00 100.00
Cost of revenues, exclusive of depreciation and amortization -65.11 -66.55 -66.03 -65.84 -64.79
Gross profit 34.89% 33.45% 33.97% 34.16% 35.21%
Selling, general and administrative expenses -14.37 -14.16 -15.75 -15.64 -16.48
Depreciation and amortization -7.84 -9.11 -11.33 -10.84 -10.96
Restructuring costs -0.19 -0.14 -0.46 -0.68 -0.65
Income from operations 12.48% 10.04% 6.44% 7.01% 7.12%
Interest income 0.09 0.04 0.05 0.08 0.08
Interest expense -2.89 -2.70 -3.66 -4.03 -3.98
Loss on extinguishment of debt 0.00 -0.19 -0.11 -0.22 -0.02
Other income (expense), net -0.23 0.94 0.57 0.33 -0.05
Income before income taxes and equity in earnings (losses) of unconsolidated affiliates 9.46% 8.13% 3.28% 3.17% 3.15%
Income tax expense -1.80 -1.17 -0.63 -1.05 -0.57
Income before equity in earnings (losses) of unconsolidated affiliates 7.65% 6.96% 2.65% 2.13% 2.58%
Equity in earnings (losses) of unconsolidated affiliates -0.08 0.04 0.06 -0.08 0.14
Net income 7.57% 7.00% 2.71% 2.05% 2.73%
Net income attributable to non-controlling interests 0.00 -0.04 -0.26 -0.32 -0.24
Net income attributable to IQVIA Holdings Inc. 7.57% 6.96% 2.46% 1.72% 2.49%

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 financial performance between 2018 and 2022 is characterized by a significant expansion in operating and net profit margins. While gross margins remained relatively stable, a systematic reduction in operating expenses and financial costs drove substantial bottom-line growth, particularly starting in 2021.

Gross Profitability and Cost Structure
Gross profit margins exhibited relative stability throughout the period, fluctuating within a narrow band. A slight decline was observed from 35.21% in 2018 to a low of 33.45% in 2021, followed by a recovery to 34.89% by the end of 2022. Correspondingly, the cost of revenues remained consistent, averaging approximately 65% to 66% of total revenues.
Operating Expense Management
A consistent downward trend is evident in operating expenses as a percentage of revenue. Selling, general and administrative expenses decreased from 16.48% in 2018 to 14.37% in 2022. More notably, depreciation and amortization costs fell significantly from 10.96% in 2018 to 7.84% in 2022, suggesting improved asset utilization or a reduction in the relative weight of amortizable assets. Restructuring costs also trended lower, decreasing from 0.65% in 2018 to 0.19% in 2022.
Operating Income Trends
Income from operations showed marked improvement, particularly in the latter half of the period. Operating margins remained flat between 2018 and 2020, ranging from 6.44% to 7.12%, before accelerating sharply to 10.04% in 2021 and reaching 12.48% in 2022. This indicates strong operational leverage and enhanced efficiency in converting revenue to operating profit.
Financial Costs and Net Earnings
Interest expenses as a percentage of revenue decreased from 3.98% in 2018 to 2.89% in 2022, contributing to the overall improvement in pre-tax margins. Net income attributable to the parent company saw a dramatic increase, rising from 2.49% in 2018 to 7.57% in 2022. The most significant jump occurred between 2020 and 2021, where net income margins shifted from 2.46% to 6.96%.

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