Name: IQVIA Holdings Inc. (NYSE:IQV) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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IQVIA Holdings Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Accounts payable	645)	621)	581)	575)	437)
Client contract related	1,065)	884)	849)	763)	678)
Compensation, including bonuses, fringe benefits and payroll taxes	980)	946)	852)	687)	660)
Professional fees	99)	102)	92)	80)	91)
Contingent consideration and deferred purchase price	90)	31)	59)	52)	90)
Interest	43)	56)	55)	53)	45)
Restructuring	26)	30)	53)	67)	74)
Other	368)	311)	272)	235)	220)
Accrued expenses	2,671)	2,360)	2,232)	1,937)	1,858)
Accounts payable and accrued expenses	3,316)	2,981)	2,813)	2,512)	2,295)
Unearned income	1,797)	1,825)	1,252)	1,014)	1,007)
Income taxes payable	161)	137)	102)	108)	100)
Current portion of long-term debt	152)	91)	149)	100)	100)
Current finance lease liabilities	5)	9)	—)	—)	—)
Other current liabilities	147)	198)	242)	211)	32)
Current liabilities	5,578)	5,241)	4,558)	3,945)	3,534)
Long-term debt, less current portion	12,595)	12,034)	12,384)	11,545)	10,907)
Deferred income taxes	464)	410)	338)	646)	736)
Long-term operating lease liabilities	264)	313)	371)	396)	—)
Long-term finance lease liabilities	224)	177)	122)	—)	—)
Other liabilities	447)	472)	511)	456)	418)
Noncurrent liabilities	13,994)	13,406)	13,726)	13,043)	12,061)
Total liabilities	19,572)	18,647)	18,284)	16,988)	15,595)
Common stock and additional paid-in capital, $0.01 par value	10,898)	10,777)	11,095)	11,049)	10,901)
Retained earnings	3,334)	2,243)	1,277)	998)	807)
Treasury stock, at cost	(7,740)	(6,572)	(6,166)	(5,733)	(4,770)
Accumulated other comprehensive loss	(727)	(406)	(205)	(311)	(224)
Equity attributable to IQVIA Holdings Inc.’s stockholders	5,765)	6,042)	6,001)	6,003)	6,714)
Non-controlling interests	—)	—)	279)	260)	240)
Total stockholders’ equity	5,765)	6,042)	6,280)	6,263)	6,954)
Total liabilities and stockholders’ equity	25,337)	24,689)	24,564)	23,251)	22,549)

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).

Total liabilities have demonstrated a consistent upward trajectory from 2018 to 2022, increasing from $15,595 million to $19,572 million. This growth is distributed across both current and noncurrent obligations, reflecting an expansion of the company's overall leverage and operational liabilities over the five-year period.

Current Liabilities Trends: Current liabilities rose from $3,534 million in 2018 to $5,578 million in 2022. A significant driver of this increase is the growth in accounts payable and accrued expenses, which climbed from $2,295 million to $3,316 million. Within accrued expenses, compensation and client contract-related liabilities showed steady growth, suggesting an increase in operational scale. Unearned income experienced a sharp increase between 2020 and 2021, rising from $1,252 million to $1,825 million, before stabilizing slightly in 2022, which typically indicates an increase in advance payments from clients.
Noncurrent Liabilities and Long-Term Debt: Noncurrent liabilities increased from $12,061 million in 2018 to $13,994 million in 2022. Long-term debt, less the current portion, remains the primary component of the balance sheet, peaking at $12,595 million in 2022. While there was a slight dip in long-term debt in 2021, the overall trend remains upward. Additionally, the emergence of long-term finance lease liabilities starting in 2020, reaching $224 million by 2022, indicates a shift in how certain assets are financed.
Stockholders' Equity Analysis: Total stockholders' equity has declined from $6,954 million in 2018 to $5,765 million in 2022. This decline occurs despite a substantial and consistent increase in retained earnings, which grew from $807 million to $3,334 million over the period. The erosion of total equity is primarily attributed to an aggressive treasury stock buyback program, with treasury stock at cost increasing from -$4,770 million to -$7,740 million. Furthermore, accumulated other comprehensive losses widened from -$224 million to -$727 million, further contributing to the reduction in total equity.
Capital Structure Observations: The relationship between total liabilities and stockholders' equity has shifted toward higher leverage. In 2018, the ratio of total liabilities to total equity was approximately 2.24:1; by 2022, this ratio increased to approximately 3.40:1. The combination of rising long-term debt and decreasing total equity indicates a more leveraged capital structure over the analyzed period.

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