Return on Assets (ROA)
since 2013
Calculation
IQVIA Holdings Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income attributable to IQVIA Holdings Inc.1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 4.31% | = | 100 | × | 1,091) | ÷ | 25,337) |
| Dec 31, 2021 | 3.91% | = | 100 | × | 966) | ÷ | 24,689) |
| Dec 31, 2020 | 1.14% | = | 100 | × | 279) | ÷ | 24,564) |
| Dec 31, 2019 | 0.82% | = | 100 | × | 191) | ÷ | 23,251) |
| Dec 31, 2018 | 1.15% | = | 100 | × | 259) | ÷ | 22,549) |
| Dec 31, 2017 | 5.76% | = | 100 | × | 1,309) | ÷ | 22,742) |
| Dec 31, 2016 | 0.54% | = | 100 | × | 115) | ÷ | 21,208) |
| Dec 31, 2015 | 9.86% | = | 100 | × | 387) | ÷ | 3,926) |
| Dec 31, 2014 | 10.78% | = | 100 | × | 356) | ÷ | 3,306) |
| Dec 31, 2013 | 7.39% | = | 100 | × | 227) | ÷ | 3,067) |
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 return on assets (ROA) over the ten-year period from 2013 to 2022 reveals a significant structural shift in asset utilization and profitability. The company experienced two distinct operational phases: a period of high asset efficiency with a lean balance sheet, followed by a period of massive asset expansion and subsequent recovery in profitability.
- Asset Base Expansion and Efficiency Compression
- Between 2013 and 2015, the organization maintained a relatively small asset base, peaking at 3,926 million USD, which supported strong ROA figures ranging from 7.39% to 10.78%. A fundamental shift occurred in 2016, where total assets surged to 21,208 million USD. This substantial increase in the denominator of the ROA calculation, coupled with a decline in net income to 115 million USD, resulted in a sharp contraction of ROA to 0.54%.
- Net Income Volatility and ROA Fluctuations
- Following the asset expansion, net income exhibited extreme volatility. A significant spike to 1,309 million USD in 2017 temporarily restored the ROA to 5.76%. However, this was not sustained, as net income declined sharply in 2018 and 2019, causing the ROA to drop back to levels between 0.82% and 1.15%. This pattern suggests a period of adjustment or integration following the increase in total assets.
- Recent Profitability Recovery
- A positive trend in asset productivity is observable from 2021 through 2022. Net income grew substantially, reaching 1,091 million USD by the end of 2022. While total assets continued to grow modestly to 25,337 million USD, the growth in earnings outpaced asset accumulation. This resulted in a steady improvement in ROA, which rose to 3.91% in 2021 and 4.31% in 2022, indicating an increasing ability to generate profit from the expanded asset base.
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Comparison to Competitors
IQVIA Holdings Inc., ROA, 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 | 4.31% | 8.53% | 10.06% | 6.53% | 8.55% | 12.62% | 7.27% | 9.57% | 13.30% | 15.91% | 14.85% | 7.15% | 18.30% |
| Dec 31, 2021 | 3.91% | 7.88% | 9.63% | 6.40% | 7.73% | 11.44% | 9.16% | 11.47% | 12.35% | 12.11% | 31.75% | 8.12% | 17.44% |
| Dec 31, 2020 | 1.14% | 3.07% | 11.54% | -7.61% | 4.79% | 13.28% | 0.18% | 8.41% | 7.72% | 6.23% | 20.47% | 9.23% | 23.07% |
| Dec 31, 2019 | 0.82% | 8.84% | 13.13% | 2.65% | 4.85% | 21.17% | 8.74% | 9.59% | 11.66% | 9.72% | 14.29% | 6.33% | 14.15% |
| Dec 31, 2018 | 1.15% | 9.58% | 12.64% | 14.06% | 5.54% | 7.36% | 8.57% | 10.00% | 7.53% | 7.00% | 20.83% | 5.22% | 33.57% |
| Dec 31, 2017 | 5.76% | 7.50% | 2.48% | 3.00% | 5.34% | -0.45% | 6.58% | 0.83% | 2.72% | 12.40% | 13.67% | 3.93% | 7.43% |
| Dec 31, 2016 | 0.54% | 9.01% | 9.95% | 13.22% | 5.64% | 7.05% | 23.70% | 11.71% | 4.11% | 4.20% | 12.84% | 4.40% | -3.87% |
| Dec 31, 2015 | 9.86% | 9.70% | 9.69% | 4.93% | 6.96% | 6.77% | 34.93% | 11.55% | 4.36% | 4.16% | 11.34% | 4.83% | -22.26% |
| Dec 31, 2014 | 10.78% | 6.44% | 7.47% | 5.94% | 7.02% | 6.43% | 34.91% | 12.45% | 12.12% | 5.40% | 8.99% | 4.42% | -31.63% |
| Dec 31, 2013 | 7.39% | 14.14% | 7.68% | 6.64% | 7.77% | 13.29% | 13.67% | 10.42% | 4.17% | 12.78% | 14.38% | 4.00% | -19.19% |
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., ROA, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| IQVIA Holdings Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2022 | 4.31% | 10.67% |
| Dec 31, 2021 | 3.91% | 10.42% |
| Dec 31, 2020 | 1.14% | 5.45% |
| Dec 31, 2019 | 0.82% | 9.02% |
| Dec 31, 2018 | 1.15% | 8.97% |
| Dec 31, 2017 | 5.76% | 5.28% |
| Dec 31, 2016 | 0.54% | 8.61% |
| Dec 31, 2015 | 9.86% | 8.93% |
| Dec 31, 2014 | 10.78% | 9.45% |
| Dec 31, 2013 | 7.39% | 9.46% |
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., ROA, long-term trends, comparison to industry (health care)
| IQVIA Holdings Inc. | Health Care | |
|---|---|---|
| Dec 31, 2022 | 4.31% | 9.66% |
| Dec 31, 2021 | 3.91% | 9.46% |
| Dec 31, 2020 | 1.14% | 5.81% |
| Dec 31, 2019 | 0.82% | 8.32% |
| Dec 31, 2018 | 1.15% | 7.90% |
| Dec 31, 2017 | 5.76% | 5.19% |
| Dec 31, 2016 | 0.54% | 7.31% |
| Dec 31, 2015 | 9.86% | 7.71% |
| Dec 31, 2014 | 10.78% | 8.59% |
| Dec 31, 2013 | 7.39% | 8.76% |
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).