IQVIA Holdings Inc. (NYSE:IQV)

Debt to equity

The debt to equity ratio showed a consistent upward trend from 1.64 in 2018 to 2.25 in 2022, indicating an increasing use of debt relative to equity over the period. When including operating lease liabilities, the ratio is slightly higher each year, also rising from 1.64 to 2.32, reflecting a similar pattern of increased leverage.

Debt to capital

Debt to capital ratios increased steadily from 0.62 in 2018 to 0.69 in 2022, suggesting a growing proportion of debt in the company’s capital structure. Including operating lease liabilities marginally increased these ratios, moving from 0.62 to 0.70 over the same period.

Debt to assets

This ratio rose from 0.49 in 2018 to a peak of 0.54 in 2020 before slightly decreasing to 0.51 in 2022. When operating lease liabilities are included, the ratio follows a similar pattern but at somewhat higher levels, ending at 0.53 in 2022. Overall, this indicates a stable but slightly increasing reliance on debt financing relative to total assets.

Financial leverage

The financial leverage ratio increased from 3.36 in 2018 to 4.39 in 2022, indicating a growing level of total assets supported by equity. This signifies that the company has intensified its use of borrowed funds or lower equity relative to total assets during this period.

Interest coverage

Interest coverage demonstrated an initial decline from 1.83 in 2018 to 1.77 in 2019 but improved substantially afterward, reaching 4.25 by 2022. This improvement suggests enhanced ability to meet interest obligations from operating earnings, especially notable from 2020 onward.

Fixed charge coverage

Fixed charge coverage followed a pattern similar to interest coverage, starting at 1.56 in 2018, dipping slightly in 2019, and then considerably increasing to 3.30 in 2022. The increase indicates a stronger capacity to cover fixed financial obligations beyond just interest, showing improved financial flexibility in recent years.

Total Debt

The total debt exhibited an overall increasing trend over the five-year period. Starting at 11,007 million US dollars at the end of 2018, it rose to 12,976 million US dollars by the end of 2022. Notable increments occurred between 2019 and 2020, as well as between 2021 and 2022, indicating a consistent reliance on debt financing.

Equity Attributable to Stockholders

Equity attributable to the company's stockholders demonstrated a declining trend. From 6,714 million US dollars at the end of 2018, equity decreased steadily each year to reach 5,765 million US dollars by the end of 2022. This downward trend suggests a reduction in the net assets available to shareholders over the period.

Debt to Equity Ratio

The debt to equity ratio increased throughout the timeframe, moving from 1.64 in 2018 to 2.25 in 2022. This rising ratio reflects an accelerating increase in leverage, implying that the company's debt is growing at a faster rate relative to its equity. The peak ratio in 2022 indicates the highest leverage level in the period analyzed.

The financial data reflects the annual progression of key balance sheet components and leverage metrics over the period from 2018 to 2022.

Total Debt (including operating lease liability)

This liability measure shows a consistent upward trajectory over the five-year span, increasing from $11,007 million in 2018 to $13,351 million in 2022. Notably, the total debt rose steadily each year except for a slight decrease in 2021 compared to 2020, suggesting ongoing borrowing or capital acquisition activities with minor repayment or restructuring in that year.

Equity Attributable to IQVIA Holdings Inc.’s Stockholders

The equity component exhibits a generally declining trend from 2018 through 2022. It decreased from $6,714 million in 2018 to $5,765 million in 2022, with a particularly significant drop between 2018 and 2019. After bottoming near the 2019-2020 levels, equity showed minimal recovery but continued to decline slightly by 2022, indicating potential challenges in retaining earnings or changes in shareholder equity possibly due to buybacks or dividends exceeding net income.

Debt to Equity Ratio (including operating lease liability)

This leverage ratio demonstrates a rising pattern, increasing from 1.64 in 2018 to 2.32 in 2022. The upward trend signals that total debt grew at a faster rate compared to equity, indicating heightened financial leverage and potentially increased financial risk. The ratio peaked at 2.2 in 2020, followed by a minor reduction in 2021, before ascending again to the highest level recorded in 2022.

Overall, the data indicates an increasing reliance on debt financing relative to equity, which may impact the company's capital structure and risk profile. The diminishing equity base combined with rising debt levels suggests a cautious approach to managing leverage and financial stability may be warranted moving forward.

Total Debt

The total debt has exhibited an increasing trend over the five-year period, rising from 11,007 million US dollars at the end of 2018 to 12,976 million US dollars by the end of 2022. Although there was a slight decrease from 12,655 million in 2020 to 12,311 million in 2021, the overall trajectory remains upward, with a notable increase of approximately 18% over the entire period.

Total Capital

Total capital demonstrated relative stability with minor fluctuations within the range of approximately 17,648 million to 18,741 million US dollars during the same timeframe. The figure peaked in 2020 at 18,656 million but slightly declined in 2021 to 18,353 million before rebounding modestly to 18,741 million in 2022. The overall change from 2018 to 2022 is an increase of roughly 6%.

Debt to Capital Ratio

The debt to capital ratio shows a gradual but steady increase, moving from 0.62 in 2018 to 0.69 in 2022. This indicates a rising proportion of debt within the total capital structure, reflecting a slight increase in financial leverage over time. The ratio increased each year except for a marginal dip from 0.68 in 2020 to 0.67 in 2021 before increasing again in 2022.

Total Debt (including operating lease liability)

The total debt of the company shows a generally upward trend over the five-year period. Starting from approximately 11.0 billion USD at the end of 2018, the debt increased steadily each year reaching around 13.3 billion USD by the end of 2022.

This represents an increase of about 21% over the period, with a notable steady rise from 2018 through 2020, a slight decline in 2021, followed by another increase in 2022. The decline in 2021 suggests a brief deleveraging or debt management effort before resuming the upward path.

Total Capital (including operating lease liability)

Total capital shows a somewhat similar trend to total debt but with less pronounced growth. Beginning at approximately 17.7 billion USD at the end of 2018, total capital rose to roughly 19.1 billion USD by the end of 2022.

The growth in total capital was relatively moderate and included a minor decrease during 2021, mirroring the movement observable in total debt. The overall increase from 2018 to 2022 amounts to around 7.9%, indicating that capital expansion was slower than the increase in debt.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio exhibited a gradual increase over the period analyzed. This ratio was 0.62 in 2018 and steadily moved upward to 0.70 by the end of 2022.

The ratio indicates a growing reliance on debt financing relative to total capital, suggesting that debt has been increasing at a faster pace than overall capital. The ratio peaked in 2020 at 0.69, slightly dipped to 0.68 in 2021, before reaching its highest point of 0.70 in 2022.

This pattern underscores a modest but consistent increase in financial leverage.

Overall Insights

The data reveals that the company has trended towards higher leverage over the five-year period, with total debt growing faster than total capital. Despite the minor dip in 2021, both debt and capital levels increased overall, but the debt to capital ratio's upward trajectory suggests increasing debt dependence.

This could imply a strategic choice to finance operations and growth more through borrowing, which may enhance returns but could also increase financial risk. The company's ability to manage this increased leverage will be crucial in maintaining financial stability.

Total Debt

The total debt of the company showed a general upward trend from 2018 to 2022. It increased from $11,007 million in 2018 to $12,976 million in 2022, with a slight dip observed in 2021 compared to 2020. This indicates a gradual rise in the company’s borrowing over the period, with a minor decrease during the 2021 fiscal year.

Total Assets

Total assets consistently increased over the five-year period, starting at $22,549 million in 2018 and reaching $25,337 million by 2022. The growth in assets was steady, without any notable declines, suggesting ongoing asset accumulation or valuation increases.

Debt to Assets Ratio

The debt to assets ratio remained relatively stable throughout the period, fluctuating narrowly between 0.49 and 0.52. This stability indicates that while both debt and assets increased, they did so proportionally. Specifically, the ratio increased from 0.49 in 2018 to a peak of 0.52 in 2020, then slightly decreased to 0.50 in 2021, before rising again to 0.51 in 2022.

Overall Analysis

The company's financial leverage, as measured by the debt to assets ratio, maintained a consistent level, suggesting a balanced approach to financing its asset base through debt. The steady increase in total assets reflects growth or investment in company resources, while the rising total debt indicates increased borrowing, potentially to support this growth. The relatively flat debt to assets ratio implies that the increase in debt was managed in line with asset growth, maintaining the company's risk profile with respect to leverage.

Total debt (including operating lease liability)

The total debt increased consistently over the five-year period from 2018 to 2022. Starting at $11,007 million in 2018, the debt rose annually to reach $13,351 million in 2022. This represents an overall growth trend with some fluctuation in the rate of increase, notably a slight decline in 2021 before rising again in 2022.

Total assets

Total assets also showed a steady upward trajectory during the same period. Beginning at $22,549 million in 2018, assets increased each year to $25,337 million in 2022. The growth in assets was relatively stable, with no significant declines, indicating gradual expansion of the company's asset base.

Debt to assets (including operating lease liability)

The debt to assets ratio fluctuated slightly but remained within a relatively narrow band between 0.49 and 0.54. It increased from 0.49 in 2018 to a peak of 0.54 in 2020, then decreased to 0.52 in 2021 before settling at 0.53 in 2022. This indicates the company's leverage ratio has remained fairly stable, suggesting a consistent balance between debt and assets over the period despite rising absolute debt levels.

Total assets

The total assets of the company demonstrated a consistent upward trend over the five-year period. Starting at US$22,549 million at the end of 2018, assets increased to US$25,337 million by the end of 2022. This represents a steady growth, albeit at a moderate pace, reflecting an expansion in the company’s asset base each year.

Equity attributable to stockholders

Equity showed a declining pattern over the same period. Beginning at US$6,714 million in 2018, equity decreased gradually to US$5,765 million in 2022. There was a notable drop between 2018 and 2019, followed by relative stability around US$6,000 million, and a further decline in the final year. This downward movement indicates a potential reduction in net assets attributable to shareholders.

Financial leverage

Financial leverage increased significantly from 3.36 in 2018 to 4.39 in 2022. This indicates that the company has been increasing its reliance on debt financing relative to equity. The ratio remained stable between 2020 and 2021 at 4.09 but rose again in 2022. The rising leverage, coupled with the decrease in equity, suggests a shift towards higher financial risk and greater use of borrowed funds to finance assets.

Earnings before interest and tax (EBIT)

The EBIT exhibited a gradual increase from 2018 through 2020, moving from 757 million to 796 million US dollars. A marked increase occurred in 2021, where EBIT nearly doubled to 1,509 million US dollars, followed by a further rise to 1,767 million US dollars in 2022. This upward trend reflects significant growth in operating profitability over the five-year period.

Interest expense

Interest expense remained relatively stable throughout the period, fluctuating mildly between 414 million and 447 million US dollars. The expense peaked in 2019 at 447 million and saw a slight decrease in 2021 at 375 million, before returning to 416 million in 2022. This stability suggests consistent financing costs over the years.

Interest coverage

Interest coverage ratio showed a notable positive trajectory. Initially declining slightly from 1.83 in 2018 to 1.77 in 2019, the ratio improved to 1.91 in 2020. Subsequently, it experienced a significant increase to 4.02 in 2021 and further to 4.25 in 2022. This indicates a strengthening ability to meet interest obligations from operating earnings, largely driven by the increase in EBIT.

Earnings before fixed charges and tax

There is a clear upward trend in earnings before fixed charges and tax over the five-year period. The amount increased steadily from 954 million US dollars in 2018 to 1005 million in 2020. A substantial growth occurred in the following years, with earnings reaching 1693 million in 2021 and further rising to 1938 million in 2022. This shows a continuous and significant improvement in earnings before fixed charges and tax, particularly from 2020 onwards.

Fixed charges

Fixed charges display a relatively stable pattern throughout the period. After a slight increase from 611 million in 2018 to 640 million in 2019, the figure decreased slightly to 625 million in 2020 and then further declined to 559 million in 2021. In 2022, fixed charges rose again moderately to 587 million, yet they remained below the levels observed in 2018 and 2019. Overall, fixed charges have not exhibited large fluctuations and seem well-managed relative to earnings.

Fixed charge coverage ratio

The fixed charge coverage ratio, which measures the ability to cover fixed charges from earnings, shows a notable strengthening trend over the period. It remained relatively steady around 1.5 to 1.6 between 2018 and 2020. Starting in 2021, the coverage ratio more than doubled to 3.03, increasing further to 3.3 in 2022. This improvement is linked to rising earnings combined with stable or decreasing fixed charges, indicating enhanced financial flexibility and reduced risk in meeting fixed obligations.