Return on Equity (ROE)
since 2013
Calculation
IQVIA Holdings Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to IQVIA Holdings Inc.1 | ÷ | Equity (deficit) attributable to IQVIA Holdings Inc.’s stockholders1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 18.92% | = | 100 | × | 1,091) | ÷ | 5,765) |
| Dec 31, 2021 | 15.99% | = | 100 | × | 966) | ÷ | 6,042) |
| Dec 31, 2020 | 4.65% | = | 100 | × | 279) | ÷ | 6,001) |
| Dec 31, 2019 | 3.18% | = | 100 | × | 191) | ÷ | 6,003) |
| Dec 31, 2018 | 3.86% | = | 100 | × | 259) | ÷ | 6,714) |
| Dec 31, 2017 | 16.14% | = | 100 | × | 1,309) | ÷ | 8,109) |
| Dec 31, 2016 | 1.33% | = | 100 | × | 115) | ÷ | 8,633) |
| Dec 31, 2015 | — | = | 100 | × | 387) | ÷ | (564) |
| Dec 31, 2014 | — | = | 100 | × | 356) | ÷ | (704) |
| Dec 31, 2013 | — | = | 100 | × | 227) | ÷ | (667) |
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 financial trajectory from 2013 to 2022 is characterized by a fundamental shift in capital structure and subsequent volatility in profitability metrics. A critical transition occurred between 2015 and 2016, where stockholders' equity moved from a deficit position to a substantial positive balance, enabling the meaningful calculation of Return on Equity (ROE) from 2016 onward.
- Equity Structure and Capitalization
- From 2013 to 2015, a consistent equity deficit was maintained, ranging from -667 million to -564 million US dollars. In 2016, a significant capitalization event occurred, resulting in equity increasing to 8,633 million US dollars. Following this peak, the equity balance followed a gradual downward trend, decreasing to 5,765 million US dollars by December 31, 2022.
- Net Income Performance
- Net income attributable to stockholders exhibited high variance throughout the period. After a low of 115 million US dollars in 2016, profit peaked at 1,309 million US dollars in 2017. A period of compression followed between 2018 and 2020, with income dipping to 191 million US dollars in 2019, before rebounding strongly to 1,091 million US dollars by the end of 2022.
- Return on Equity (ROE) Trends
- The ROE profile reflects the combined impact of fluctuating net income and a contracting equity base. ROE began at 1.33% in 2016 and rose sharply to 16.14% in 2017. A subsequent decline occurred between 2018 and 2020, where ROE stagnated within a range of 3.18% to 4.65%. A robust recovery is evident in the final two years of the period, with ROE climbing to 15.99% in 2021 and reaching a period high of 18.92% in 2022.
The most recent data indicates an improving efficiency in generating profit relative to shareholders' equity, driven by a combination of increasing net income and a reduced equity denominator.
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Comparison to Competitors
IQVIA Holdings Inc., ROE, 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 | 18.92% | 68.60% | 178.97% | 20.37% | 14.39% | 58.64% | 21.62% | 23.36% | 31.57% | 32.79% | 19.14% | 15.80% | 23.88% |
| Dec 31, 2021 | 15.99% | 74.91% | 87.96% | 19.46% | 14.24% | 62.16% | 29.55% | 28.20% | 34.17% | 28.47% | 43.03% | 18.94% | 23.19% |
| Dec 31, 2020 | 4.65% | 35.30% | 77.20% | -23.84% | 9.17% | 109.79% | 0.68% | 23.25% | 27.91% | 15.21% | 31.86% | 18.47% | 31.22% |
| Dec 31, 2019 | 3.18% | — | 81.07% | 6.66% | 9.94% | 319.09% | 23.91% | 25.42% | 37.99% | 25.77% | 19.08% | 12.45% | 19.34% |
| Dec 31, 2018 | 3.86% | — | 67.15% | 35.07% | 9.40% | 32.88% | 25.51% | 25.60% | 23.30% | 17.59% | 27.91% | 10.65% | 47.28% |
| Dec 31, 2017 | 16.14% | 104.16% | 7.84% | 8.58% | 9.45% | -1.76% | 22.64% | 2.16% | 6.97% | 29.47% | 19.51% | 8.76% | 12.99% |
| Dec 31, 2016 | 1.33% | 128.41% | 25.85% | 27.55% | 11.10% | 19.54% | 71.48% | 23.49% | 9.78% | 12.12% | 20.13% | 9.39% | -9.69% |
| Dec 31, 2015 | — | 130.39% | 24.71% | 10.97% | 14.17% | 16.53% | 97.70% | 21.66% | 9.94% | 10.75% | 17.40% | 9.25% | -59.19% |
| Dec 31, 2014 | — | 101.84% | 20.01% | 13.49% | 11.11% | 15.55% | 78.45% | 23.40% | 24.50% | 12.81% | 13.69% | 9.22% | -68.70% |
| Dec 31, 2013 | — | 91.90% | 23.00% | 16.91% | 12.04% | 26.57% | 27.05% | 18.68% | 8.85% | 28.83% | 21.74% | 7.55% | -32.81% |
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., ROE, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| IQVIA Holdings Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2022 | 18.92% | 27.99% |
| Dec 31, 2021 | 15.99% | 29.75% |
| Dec 31, 2020 | 4.65% | 17.22% |
| Dec 31, 2019 | 3.18% | 27.68% |
| Dec 31, 2018 | 3.86% | 26.29% |
| Dec 31, 2017 | 16.14% | 14.59% |
| Dec 31, 2016 | 1.33% | 22.19% |
| Dec 31, 2015 | — | 21.44% |
| Dec 31, 2014 | — | 20.91% |
| Dec 31, 2013 | — | 20.33% |
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., ROE, long-term trends, comparison to industry (health care)
| IQVIA Holdings Inc. | Health Care | |
|---|---|---|
| Dec 31, 2022 | 18.92% | 24.82% |
| Dec 31, 2021 | 15.99% | 25.44% |
| Dec 31, 2020 | 4.65% | 16.70% |
| Dec 31, 2019 | 3.18% | 23.30% |
| Dec 31, 2018 | 3.86% | 21.27% |
| Dec 31, 2017 | 16.14% | 13.77% |
| Dec 31, 2016 | 1.33% | 18.53% |
| Dec 31, 2015 | — | 18.52% |
| Dec 31, 2014 | — | 19.17% |
| Dec 31, 2013 | — | 18.81% |
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).