Current Ratio
since 2013
Calculation
IQVIA Holdings Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 0.89 | = | 4,981) | ÷ | 5,578) |
| Dec 31, 2021 | 0.91 | = | 4,763) | ÷ | 5,241) |
| Dec 31, 2020 | 1.12 | = | 5,090) | ÷ | 4,558) |
| Dec 31, 2019 | 1.05 | = | 4,126) | ÷ | 3,945) |
| Dec 31, 2018 | 1.10 | = | 3,874) | ÷ | 3,534) |
| Dec 31, 2017 | 1.19 | = | 3,450) | ÷ | 2,904) |
| Dec 31, 2016 | 1.23 | = | 3,337) | ÷ | 2,705) |
| Dec 31, 2015 | 1.51 | = | 2,412) | ÷ | 1,594) |
| Dec 31, 2014 | 1.46 | = | 2,146) | ÷ | 1,472) |
| Dec 31, 2013 | 1.31 | = | 1,946) | ÷ | 1,482) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 US$ in millions
The analysis of the financial data over the ten-year period reveals several notable trends in the liquidity position of the entity.
- Current Assets
- The current assets showed a consistent upward trend from 2013 to 2020, increasing from 1,946 million US dollars to a peak of 5,090 million US dollars. This represents a significant growth in resources expected to be converted into cash within the operating cycle. After 2020, current assets experienced a slight decline in 2021 to 4,763 million US dollars, followed by a moderate increase again to 4,981 million US dollars in 2022.
- Current Liabilities
- Current liabilities also increased steadily throughout the period, starting at 1,482 million US dollars in 2013 and rising sharply to 5,578 million US dollars by 2022. The growth in current liabilities was generally more pronounced than that of current assets, particularly noticeable from 2016 onward.
- Current Ratio
- The current ratio, which measures the company’s ability to cover short-term obligations with short-term assets, exhibited a declining trend over the years. Beginning at 1.31 in 2013, the ratio increased slightly in 2014 and 2015 to reach a peak of 1.51, implying a strong liquidity position. However, from 2016 onwards, the ratio steadily decreased and fell below 1.0 in 2021 and 2022, reaching 0.89 by the last reported year. This decline indicates a potential tightening in liquidity, suggesting that current liabilities outpaced current assets and may present challenges in meeting short-term obligations.
In summary, while current assets increased consistently over the examined period, current liabilities grew at a faster rate, particularly in the later years. This dynamic has resulted in a decreasing current ratio, which may reflect diminishing short-term financial flexibility. Continuous monitoring of liquidity ratios is advisable to assess the company's ability to manage its working capital efficiently.
Comparison to Competitors
IQVIA Holdings Inc., current ratio, long-term trends, comparison to competitors
| IQVIA Holdings Inc. | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 0.89 | 0.96 | 1.41 | 1.25 | 1.89 | 1.05 | 1.29 | 0.99 | 1.47 | 1.22 | 5.06 | 1.48 | 4.83 |
| Dec 31, 2021 | 0.91 | 0.79 | 1.59 | 1.52 | 1.43 | 1.23 | 1.27 | 1.35 | 1.27 | 1.40 | 3.56 | 1.50 | 4.46 |
| Dec 31, 2020 | 1.12 | 0.84 | 1.81 | 1.58 | 1.86 | 1.40 | 1.40 | 1.21 | 1.02 | 1.35 | 3.63 | 2.13 | 4.33 |
| Dec 31, 2019 | 1.05 | 3.18 | 1.44 | 1.60 | 5.19 | 1.16 | 3.10 | 1.26 | 1.24 | 0.88 | 3.67 | 1.92 | 3.61 |
| Dec 31, 2018 | 1.10 | 0.98 | 2.79 | 1.61 | 1.47 | 1.73 | 3.38 | 1.47 | 1.17 | 1.57 | 4.47 | 1.73 | 3.43 |
| Dec 31, 2017 | 1.19 | 1.28 | 5.49 | 1.55 | 1.43 | 1.32 | 2.74 | 1.41 | 1.33 | 1.35 | 3.82 | 1.34 | 3.28 |
| Dec 31, 2016 | 1.23 | 1.65 | 4.11 | 1.55 | 0.97 | 1.37 | 2.22 | 2.47 | 1.78 | 1.25 | 2.56 | 1.44 | 2.31 |
| Dec 31, 2015 | 1.51 | 1.50 | 4.44 | 1.30 | 1.27 | 1.53 | 2.50 | 2.17 | 1.55 | 1.49 | 3.59 | 1.38 | 2.78 |
| Dec 31, 2014 | 1.46 | 1.41 | 4.95 | 1.73 | 1.75 | 1.09 | 3.07 | 2.36 | 1.77 | 2.67 | 3.31 | 1.22 | 4.20 |
| Dec 31, 2013 | 1.31 | 2.59 | 3.44 | 1.52 | 2.01 | 1.47 | 1.15 | 2.20 | 2.00 | 2.41 | 6.01 | 3.16 | 3.99 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)
IQVIA Holdings Inc., current ratio, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| IQVIA Holdings Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2022 | 0.89 | 1.30 |
| Dec 31, 2021 | 0.91 | 1.36 |
| Dec 31, 2020 | 1.12 | 1.37 |
| Dec 31, 2019 | 1.05 | 1.66 |
| Dec 31, 2018 | 1.10 | 1.71 |
| Dec 31, 2017 | 1.19 | 1.74 |
| Dec 31, 2016 | 1.23 | 1.91 |
| Dec 31, 2015 | 1.51 | 1.90 |
| Dec 31, 2014 | 1.46 | 2.19 |
| Dec 31, 2013 | 1.31 | 2.17 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
Comparison to Industry (Health Care)
IQVIA Holdings Inc., current ratio, long-term trends, comparison to industry (health care)
| IQVIA Holdings Inc. | Health Care | |
|---|---|---|
| Dec 31, 2022 | 0.89 | 1.23 |
| Dec 31, 2021 | 0.91 | 1.31 |
| Dec 31, 2020 | 1.12 | 1.30 |
| Dec 31, 2019 | 1.05 | 1.48 |
| Dec 31, 2018 | 1.10 | 1.52 |
| Dec 31, 2017 | 1.19 | 1.55 |
| Dec 31, 2016 | 1.23 | 1.73 |
| Dec 31, 2015 | 1.51 | 1.70 |
| Dec 31, 2014 | 1.46 | 1.92 |
| Dec 31, 2013 | 1.31 | 1.96 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).