Name: IQVIA Holdings Inc. (NYSE:IQV) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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IQVIA Holdings Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income	1,091)	971)	308)	227)	284)
Depreciation and amortization	1,130)	1,264)	1,287)	1,202)	1,141)
Amortization of debt issuance costs and discount	15)	17)	18)	13)	11)
Stock-based compensation	194)	170)	95)	146)	113)
(Gain) loss on disposals of property and equipment, net	(10)	—)	—)	1)	—)
(Earnings) losses from unconsolidated affiliates	12)	(6)	(7)	9)	(15)
(Gain) loss on investments, net	27)	(16)	(25)	(43)	3)
Benefit from deferred income taxes	(115)	(138)	(176)	(157)	(177)
Accounts receivable and unbilled services	(421)	(138)	255)	(122)	(297)
Prepaid expenses and other assets	7)	(15)	(146)	(92)	(66)
Accounts payable and accrued expenses	427)	244)	253)	240)	368)
Unearned income	31)	591)	180)	(2)	7)
Income taxes payable and other liabilities	(128)	(2)	(83)	(5)	(118)
Changes in operating assets and liabilities	(84)	680)	459)	19)	(106)
Adjustments to reconcile net income to cash provided by operating activities	1,169)	1,971)	1,651)	1,190)	970)
Net cash provided by operating activities	2,260)	2,942)	1,959)	1,417)	1,254)
Acquisition of property, equipment and software	(674)	(640)	(616)	(582)	(459)
Acquisition of businesses, net of cash acquired	(1,315)	(1,458)	(177)	(588)	(309)
Purchases of marketable securities, net	(5)	(10)	(9)	(3)	(4)
Investments in unconsolidated affiliates, net of payments received	(20)	(5)	10)	—)	(17)
(Investments in) proceeds from sale of equity securities	—)	5)	(2)	(22)	(23)
Other	8)	5)	(2)	5)	2)
Net cash used in investing activities	(2,006)	(2,103)	(796)	(1,190)	(810)
Proceeds from issuance of debt	1,250)	1,951)	1,591)	1,900)	1,631)
Payment of debt issuance costs	(5)	(40)	(33)	(47)	(22)
Repayment of debt and principal payments on finance leases	(634)	(2,091)	(864)	(899)	(732)
Proceeds from revolving credit facility	2,350)	810)	1,250)	2,522)	2,445)
Repayment of revolving credit facility	(2,025)	(600)	(1,635)	(2,776)	(2,329)
(Payments) proceeds related to employee stock option plans	(71)	(59)	(44)	11)	15)
Repurchase of common stock	(1,168)	(406)	(447)	(949)	(1,405)
Distributions to non-controlling interest, net	—)	—)	(13)	(18)	(31)
Acquisition of Quest’s non-controlling interest	—)	(758)	—)	—)	—)
Contingent consideration and deferred purchase price payments	(26)	(42)	(22)	(20)	(24)
Net cash used in financing activities	(329)	(1,235)	(217)	(276)	(452)
Effect of foreign currency exchange rate changes on cash	(75)	(52)	31)	(5)	(60)
Increase (decrease) in cash and cash equivalents	(150)	(448)	977)	(54)	(68)
Cash and cash equivalents at beginning of period	1,366)	1,814)	837)	891)	959)
Cash and cash equivalents at end of period	1,216)	1,366)	1,814)	837)	891)

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).

Operating cash flow exhibits a strong upward trajectory over the analyzed five-year period, with net cash provided by operating activities growing from 1,254 million USD in 2018 to 2,260 million USD in 2022. This growth is underpinned by a significant expansion in net income, which rose from 284 million USD in 2018 to 1,091 million USD in 2022, reflecting a substantial increase in core profitability. The operating cash flow peaked in 2021 at 2,942 million USD, driven in part by favorable changes in operating assets and liabilities, specifically a surge in unearned income during 2020 and 2021.

Operating Performance and Cash Conversion: The consistency of depreciation and amortization expenses, remaining largely between 1,130 million USD and 1,287 million USD, indicates a stable base of long-term assets. The ability to generate cash from operations consistently exceeds net income, illustrating a healthy cash conversion process. However, 2022 saw a notable increase in accounts receivable and unbilled services outflows (421 million USD), which partially offset the gains in net income.
Investment Strategy and Capital Expenditure: A consistent increase in capital expenditures is observed, with acquisitions of property, equipment, and software rising steadily from 459 million USD in 2018 to 674 million USD in 2022. Strategic expansion is further evidenced by a sharp escalation in business acquisitions, which peaked at 1,458 million USD in 2021 and 1,315 million USD in 2022. This shift suggests a transition toward a more aggressive growth-by-acquisition strategy in the latter half of the period.
Financing Activities and Capital Structure: The financing profile is characterized by active debt management and capital returns. Debt issuance remained robust, averaging approximately 1.5 billion USD annually, while repayments fluctuated, with a significant spike of 2,091 million USD in 2021. The frequent use of revolving credit facilities indicates a strategy of maintaining high liquidity to fund operational needs and acquisitions. Capital return to shareholders via common stock repurchases was most prominent in 2018 (1,405 million USD) and 2022 (1,168 million USD).
Liquidity and Cash Position: Despite heavy investing outflows in 2021 and 2022, the ending cash and cash equivalents remained relatively stable, closing at 1,216 million USD in 2022 compared to 891 million USD in 2018. The volatility in the net change of cash is primarily attributed to the timing of large-scale business acquisitions and the strategic repayment of debt, balanced by strong operational cash inflows.

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