Operating Profit Margin
since 2013
Calculation
IQVIA Holdings Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income from operations1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 12.48% | = | 100 | × | 1,799) | ÷ | 14,410) |
| Dec 31, 2021 | 10.04% | = | 100 | × | 1,393) | ÷ | 13,874) |
| Dec 31, 2020 | 6.44% | = | 100 | × | 731) | ÷ | 11,359) |
| Dec 31, 2019 | 7.01% | = | 100 | × | 777) | ÷ | 11,088) |
| Dec 31, 2018 | 7.12% | = | 100 | × | 741) | ÷ | 10,412) |
| Dec 31, 2017 | 7.38% | = | 100 | × | 719) | ÷ | 9,739) |
| Dec 31, 2016 | 9.33% | = | 100 | × | 642) | ÷ | 6,878) |
| Dec 31, 2015 | 11.27% | = | 100 | × | 647) | ÷ | 5,738) |
| Dec 31, 2014 | 10.81% | = | 100 | × | 590) | ÷ | 5,460) |
| Dec 31, 2013 | 9.07% | = | 100 | × | 462) | ÷ | 5,100) |
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 operating profit margin exhibits a cyclical trajectory over the ten-year period from 2013 to 2022, characterized by an initial phase of expansion, a prolonged period of contraction, and a sharp recovery in the final two years. While total revenues grew consistently from US$ 5,100 million to US$ 14,410 million, the ability to convert those revenues into operating profit fluctuated significantly.
- Initial Margin Expansion (2013–2015)
- During the first three years of the period, the operating profit margin increased steadily from 9.07% to a peak of 11.27%. This growth was supported by a consistent rise in income from operations, which grew from US$ 462 million to US$ 647 million.
- Period of Margin Compression (2016–2020)
- A sustained downward trend in profitability is observed between 2016 and 2020. Despite substantial revenue growth—increasing from US$ 6,878 million in 2016 to US$ 11,359 million in 2020—the operating profit margin declined continuously, reaching a period low of 6.44%. This divergence indicates that operating expenses scaled more rapidly than revenue growth during this interval.
- Accelerated Recovery and Peak Performance (2021–2022)
- A significant reversal in the margin trend occurred in 2021, with the operating profit margin rising to 10.04% and further expanding to 12.48% by December 31, 2022. This recovery is marked by a disproportionate increase in operating income, which surged from US$ 731 million in 2020 to US$ 1,799 million in 2022, representing the highest efficiency levels recorded across the analyzed decade.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
IQVIA Holdings Inc., operating profit margin, long-term trends, comparison to competitors
| IQVIA Holdings Inc. | AbbVie Inc. | Amgen Inc. | Danaher Corp. | Gilead Sciences Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 12.48% | 31.21% | 38.57% | 27.61% | 27.17% | 38.93% | 18.69% | 48.23% |
| Dec 31, 2021 | 10.04% | 31.89% | 31.44% | 25.35% | 36.72% | 55.67% | 25.57% | 36.73% |
| Dec 31, 2020 | 6.44% | 24.81% | 37.70% | 18.99% | 16.72% | 42.09% | 24.19% | 46.03% |
| Dec 31, 2019 | 7.01% | 39.03% | 43.57% | 18.25% | 19.38% | 28.10% | 17.99% | 28.77% |
| Dec 31, 2018 | 7.12% | 19.49% | 45.55% | 17.11% | 37.83% | 37.77% | 15.53% | 20.84% |
| Dec 31, 2017 | 7.38% | 33.99% | 45.76% | 16.48% | 55.04% | 35.41% | 14.19% | 4.95% |
| Dec 31, 2016 | 9.33% | 36.60% | 44.74% | 16.29% | 58.87% | 27.38% | 13.40% | 0.58% |
| Dec 31, 2015 | 11.27% | 32.97% | 40.44% | 16.87% | 69.03% | 30.51% | 13.77% | -45.23% |
| Dec 31, 2014 | 10.81% | 17.09% | 32.03% | 17.23% | 62.37% | 29.74% | 14.82% | -119.30% |
| Dec 31, 2013 | 9.07% | 30.14% | 32.25% | 17.13% | 41.87% | 36.11% | 12.30% | -74.54% |
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).