Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
Coverage Ratios
IQVIA Holdings Inc., solvency ratios
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).
An examination of the solvency ratios between 2018 and 2022 reveals a trend of increasing leverage paired with a significant improvement in debt-servicing capacity.
- Leverage and Capital Structure
- A consistent upward trajectory is observed in leverage ratios. The debt to equity ratio increased from 1.64 in 2018 to 2.25 in 2022, with the inclusion of operating lease liabilities further elevating this figure to 2.32. Financial leverage similarly rose from 3.36 to 4.39 over the same period. These trends indicate a growing reliance on debt financing relative to shareholder equity.
- Debt to capital and debt to assets ratios remained more stable, although they exhibited a slight upward trend. Debt to capital moved from 0.62 in 2018 to 0.69 in 2022, while debt to assets remained relatively flat, fluctuating between 0.49 and 0.51. This suggests that the increase in total debt has been largely proportional to the growth of the total asset base.
- Debt Service Coverage
- Despite the increase in total leverage, the ability to meet fixed obligations improved substantially. Interest coverage remained relatively stagnant between 2018 and 2020, ranging from 1.77 to 1.91, before experiencing a sharp increase to 4.02 in 2021 and 4.25 in 2022. This represents a significant strengthening of the margin available to cover interest expenses.
- Fixed charge coverage mirrored this pattern, moving from 1.56 in 2018 to 3.30 in 2022. The most pronounced growth occurred between 2020 and 2021, where the ratio nearly doubled from 1.61 to 3.03, indicating improved operational cash flows or earnings relative to fixed commitments.
In summary, while the company has increased its long-term debt burden and financial leverage, the marked improvement in coverage ratios suggests that the operational capacity to service this debt has increased, thereby mitigating the risks associated with the higher leverage levels.
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Debt to Equity
IQVIA Holdings Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt | 152) | 91) | 149) | 100) | 100) | |
| Current finance lease liabilities | 5) | 9) | —) | —) | —) | |
| Long-term debt, less current portion | 12,595) | 12,034) | 12,384) | 11,545) | 10,907) | |
| Long-term finance lease liabilities | 224) | 177) | 122) | —) | —) | |
| Total debt | 12,976) | 12,311) | 12,655) | 11,645) | 11,007) | |
| Equity attributable to IQVIA Holdings Inc.’s stockholders | 5,765) | 6,042) | 6,001) | 6,003) | 6,714) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 2.25 | 2.04 | 2.11 | 1.94 | 1.64 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| AbbVie Inc. | 3.67 | 4.98 | — | — | — | |
| Amgen Inc. | 10.64 | 4.97 | — | — | — | |
| Bristol-Myers Squibb Co. | 1.27 | 1.24 | — | — | — | |
| Danaher Corp. | 0.39 | 0.49 | — | — | — | |
| Eli Lilly & Co. | 1.52 | 1.88 | — | — | — | |
| Gilead Sciences Inc. | 1.19 | 1.27 | — | — | — | |
| Johnson & Johnson | 0.52 | 0.46 | — | — | — | |
| Merck & Co. Inc. | 0.67 | 0.87 | — | — | — | |
| Pfizer Inc. | 0.37 | 0.50 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.12 | 0.14 | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.78 | 0.85 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 0.03 | 0.06 | — | — | — | |
| Debt to Equity, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.80 | 0.93 | — | — | — | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.72 | 0.80 | — | — | — | |
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).
1 2022 Calculation
Debt to equity = Total debt ÷ Equity attributable to IQVIA Holdings Inc.’s stockholders
= 12,976 ÷ 5,765 = 2.25
2 Click competitor name to see calculations.
The solvency profile of the organization exhibits a consistent increase in financial leverage from 2018 to 2022. This trend is characterized by a simultaneous rise in total debt obligations and a general contraction in the equity base attributable to stockholders.
- Total Debt Trends
- Total debt grew from US$ 11,007 million in 2018 to US$ 12,976 million by the end of 2022. Although a slight reduction was noted in 2021, the overall trajectory remained positive, indicating an expansion of borrowed capital over the five-year period.
- Stockholders' Equity Trends
- Equity attributable to stockholders experienced a downward trend, decreasing from US$ 6,714 million in 2018 to US$ 5,765 million in 2022. A significant decline occurred between 2018 and 2019, with the equity base remaining relatively stagnant through 2021 before further decreasing in 2022.
- Debt to Equity Ratio Analysis
- The debt to equity ratio increased from 1.64 in 2018 to 2.25 in 2022. The ratio rose steadily to 2.11 by 2020, experienced a marginal correction to 2.04 in 2021, and reached its peak in 2022. This progression reflects an increasing reliance on debt relative to equity, suggesting a shift toward a more leveraged capital structure.
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Debt to Equity (including Operating Lease Liability)
IQVIA Holdings Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt | 152) | 91) | 149) | 100) | 100) | |
| Current finance lease liabilities | 5) | 9) | —) | —) | —) | |
| Long-term debt, less current portion | 12,595) | 12,034) | 12,384) | 11,545) | 10,907) | |
| Long-term finance lease liabilities | 224) | 177) | 122) | —) | —) | |
| Total debt | 12,976) | 12,311) | 12,655) | 11,645) | 11,007) | |
| Current operating lease liabilities (included in Other current liabilities) | 111) | 140) | 156) | 153) | —) | |
| Long-term operating lease liabilities | 264) | 313) | 371) | 396) | —) | |
| Total debt (including operating lease liability) | 13,351) | 12,764) | 13,182) | 12,194) | 11,007) | |
| Equity attributable to IQVIA Holdings Inc.’s stockholders | 5,765) | 6,042) | 6,001) | 6,003) | 6,714) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 2.32 | 2.11 | 2.20 | 2.03 | 1.64 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 3.72 | 5.03 | — | — | — | |
| Amgen Inc. | 10.83 | 5.07 | — | — | — | |
| Bristol-Myers Squibb Co. | 1.31 | 1.27 | — | — | — | |
| Danaher Corp. | 0.41 | 0.52 | — | — | — | |
| Eli Lilly & Co. | 1.59 | 1.96 | — | — | — | |
| Gilead Sciences Inc. | 1.22 | 1.30 | — | — | — | |
| Johnson & Johnson | 0.53 | 0.47 | — | — | — | |
| Merck & Co. Inc. | 0.70 | 0.91 | — | — | — | |
| Pfizer Inc. | 0.41 | 0.54 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.12 | 0.15 | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.82 | 0.89 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 0.06 | 0.10 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.83 | 0.96 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.76 | 0.83 | — | — | — | |
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).
1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity attributable to IQVIA Holdings Inc.’s stockholders
= 13,351 ÷ 5,765 = 2.32
2 Click competitor name to see calculations.
The solvency profile exhibits a trend of increasing financial leverage over the five-year period ending December 31, 2022. This progression is characterized by a simultaneous increase in total debt obligations and a contraction in stockholders' equity, resulting in a weakened solvency position relative to the 2018 baseline.
- Total Debt Obligations
- Total debt, inclusive of operating lease liabilities, rose from US$ 11,007 million in 2018 to US$ 13,351 million in 2022. Aside from a slight reduction in 2021 to US$ 12,764 million, the overall trajectory indicates a consistent expansion of the company's total liabilities.
- Stockholders' Equity
- Equity attributable to stockholders showed a general downward trend, declining from US$ 6,714 million in 2018 to US$ 5,765 million in 2022. This reduction in the equity base limits the internal capital available to support operations and increases the proportional weight of debt in the capital structure.
- Debt to Equity Ratio
- The debt to equity ratio increased from 1.64 in 2018 to 2.32 in 2022. The most significant acceleration occurred between 2018 and 2020, during which the ratio climbed from 1.64 to 2.20. While a temporary decrease to 2.11 was observed in 2021, the ratio peaked in 2022, reflecting a heightened reliance on external borrowing to finance assets and operations.
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Debt to Capital
IQVIA Holdings Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt | 152) | 91) | 149) | 100) | 100) | |
| Current finance lease liabilities | 5) | 9) | —) | —) | —) | |
| Long-term debt, less current portion | 12,595) | 12,034) | 12,384) | 11,545) | 10,907) | |
| Long-term finance lease liabilities | 224) | 177) | 122) | —) | —) | |
| Total debt | 12,976) | 12,311) | 12,655) | 11,645) | 11,007) | |
| Equity attributable to IQVIA Holdings Inc.’s stockholders | 5,765) | 6,042) | 6,001) | 6,003) | 6,714) | |
| Total capital | 18,741) | 18,353) | 18,656) | 17,648) | 17,721) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.69 | 0.67 | 0.68 | 0.66 | 0.62 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| AbbVie Inc. | 0.79 | 0.83 | — | — | — | |
| Amgen Inc. | 0.91 | 0.83 | — | — | — | |
| Bristol-Myers Squibb Co. | 0.56 | 0.55 | — | — | — | |
| Danaher Corp. | 0.28 | 0.33 | — | — | — | |
| Eli Lilly & Co. | 0.60 | 0.65 | — | — | — | |
| Gilead Sciences Inc. | 0.54 | 0.56 | — | — | — | |
| Johnson & Johnson | 0.34 | 0.31 | — | — | — | |
| Merck & Co. Inc. | 0.40 | 0.46 | — | — | — | |
| Pfizer Inc. | 0.27 | 0.33 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.11 | 0.13 | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.44 | 0.46 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 0.03 | 0.05 | — | — | — | |
| Debt to Capital, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.44 | 0.48 | — | — | — | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.42 | 0.44 | — | — | — | |
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).
1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 12,976 ÷ 18,741 = 0.69
2 Click competitor name to see calculations.
An analysis of the solvency metrics between 2018 and 2022 reveals a gradual increase in financial leverage. While total capital remained relatively stable over the five-year period, total debt experienced a net increase, leading to a steady rise in the debt-to-capital ratio.
- Debt to Capital Ratio
- The ratio exhibited a consistent upward trajectory, rising from 0.62 in 2018 to 0.69 by the end of 2022. This indicates a growing reliance on debt financing relative to the overall capital structure. A minor correction was observed in 2021, when the ratio decreased slightly to 0.67, before reaching its period peak in 2022.
- Total Debt Trends
- Total debt increased from 11,007 million US dollars in 2018 to 12,976 million US dollars in 2022. The most pronounced growth occurred between 2019 and 2020, during which debt rose by approximately 1,010 million US dollars. A brief decline occurred in 2021, followed by a renewed increase in the final year of the period.
- Total Capital Dynamics
- Total capital demonstrated relative stability, moving from 17,721 million US dollars in 2018 to 18,741 million US dollars in 2022. Because the growth in total capital did not keep pace with the growth in total debt, the overall solvency profile shifted toward higher leverage over the five-year duration.
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Debt to Capital (including Operating Lease Liability)
IQVIA Holdings Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt | 152) | 91) | 149) | 100) | 100) | |
| Current finance lease liabilities | 5) | 9) | —) | —) | —) | |
| Long-term debt, less current portion | 12,595) | 12,034) | 12,384) | 11,545) | 10,907) | |
| Long-term finance lease liabilities | 224) | 177) | 122) | —) | —) | |
| Total debt | 12,976) | 12,311) | 12,655) | 11,645) | 11,007) | |
| Current operating lease liabilities (included in Other current liabilities) | 111) | 140) | 156) | 153) | —) | |
| Long-term operating lease liabilities | 264) | 313) | 371) | 396) | —) | |
| Total debt (including operating lease liability) | 13,351) | 12,764) | 13,182) | 12,194) | 11,007) | |
| Equity attributable to IQVIA Holdings Inc.’s stockholders | 5,765) | 6,042) | 6,001) | 6,003) | 6,714) | |
| Total capital (including operating lease liability) | 19,116) | 18,806) | 19,183) | 18,197) | 17,721) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.70 | 0.68 | 0.69 | 0.67 | 0.62 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 0.79 | 0.83 | — | — | — | |
| Amgen Inc. | 0.92 | 0.84 | — | — | — | |
| Bristol-Myers Squibb Co. | 0.57 | 0.56 | — | — | — | |
| Danaher Corp. | 0.29 | 0.34 | — | — | — | |
| Eli Lilly & Co. | 0.61 | 0.66 | — | — | — | |
| Gilead Sciences Inc. | 0.55 | 0.56 | — | — | — | |
| Johnson & Johnson | 0.35 | 0.32 | — | — | — | |
| Merck & Co. Inc. | 0.41 | 0.48 | — | — | — | |
| Pfizer Inc. | 0.29 | 0.35 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.11 | 0.13 | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.45 | 0.47 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 0.06 | 0.09 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.45 | 0.49 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.43 | 0.45 | — | — | — | |
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).
1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 13,351 ÷ 19,116 = 0.70
2 Click competitor name to see calculations.
An upward trend in leverage is observed between 2018 and 2022, characterized by a steady increase in the proportion of debt relative to total capital. The solvency profile indicates a growing reliance on debt financing over the five-year period, with the debt-to-capital ratio rising from 0.62 in 2018 to 0.70 by the end of 2022.
- Total Debt Dynamics
- Total debt, including operating lease liabilities, grew from US$ 11,007 million in 2018 to US$ 13,351 million in 2022. This growth was most pronounced between 2018 and 2020, followed by a brief contraction in 2021 to US$ 12,764 million, before reaching a five-year peak in 2022.
- Total Capital Growth
- Total capital followed a similar trajectory, increasing from US$ 17,721 million in 2018 to US$ 19,116 million in 2022. The growth in total capital was less aggressive than the growth in debt during the initial years, which contributed to the rising leverage ratio.
- Debt to Capital Ratio Analysis
- The debt-to-capital ratio experienced a consistent increase from 0.62 in 2018 to 0.69 in 2020. A marginal decrease to 0.68 was recorded in 2021, coinciding with the reduction in total debt. However, the ratio reached its highest point of 0.70 in 2022, signifying that debt constitutes a larger portion of the capital structure than at the start of the observed period.
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Debt to Assets
IQVIA Holdings Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt | 152) | 91) | 149) | 100) | 100) | |
| Current finance lease liabilities | 5) | 9) | —) | —) | —) | |
| Long-term debt, less current portion | 12,595) | 12,034) | 12,384) | 11,545) | 10,907) | |
| Long-term finance lease liabilities | 224) | 177) | 122) | —) | —) | |
| Total debt | 12,976) | 12,311) | 12,655) | 11,645) | 11,007) | |
| Total assets | 25,337) | 24,689) | 24,564) | 23,251) | 22,549) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.51 | 0.50 | 0.52 | 0.50 | 0.49 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| AbbVie Inc. | 0.46 | 0.52 | — | — | — | |
| Amgen Inc. | 0.60 | 0.54 | — | — | — | |
| Bristol-Myers Squibb Co. | 0.41 | 0.41 | — | — | — | |
| Danaher Corp. | 0.23 | 0.27 | — | — | — | |
| Eli Lilly & Co. | 0.33 | 0.35 | — | — | — | |
| Gilead Sciences Inc. | 0.40 | 0.39 | — | — | — | |
| Johnson & Johnson | 0.21 | 0.19 | — | — | — | |
| Merck & Co. Inc. | 0.28 | 0.31 | — | — | — | |
| Pfizer Inc. | 0.18 | 0.21 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.11 | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.35 | 0.37 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 0.03 | 0.04 | — | — | — | |
| Debt to Assets, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.31 | 0.32 | — | — | — | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.28 | 0.30 | — | — | — | |
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).
1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 12,976 ÷ 25,337 = 0.51
2 Click competitor name to see calculations.
The solvency profile of the organization exhibits a high degree of stability over the five-year period ending December 31, 2022. While both total debt and total assets increased in absolute terms, the proportional relationship between them remained consistent, indicating a balanced approach to leverage and capital expansion.
- Total Debt Trajectory
- Total debt followed a general upward trend, rising from US$ 11,007 million in 2018 to US$ 12,976 million by 2022. A temporary reduction occurred in 2021, where debt decreased to US$ 12,311 million from a 2020 peak of US$ 12,655 million, before increasing again in the final year of the analyzed period.
- Total Asset Growth
- Assets demonstrated consistent annual growth throughout the period. Starting at US$ 22,549 million in 2018, the asset base expanded steadily each year to reach US$ 25,337 million by December 31, 2022, reflecting a continuous increase in the organization's total resource base.
- Debt to Assets Ratio Analysis
- The debt to assets ratio remained narrow in its variance, fluctuating between a minimum of 0.49 in 2018 and a maximum of 0.52 in 2020. The ratio concluded the period at 0.51 in 2022. This suggests that the organization consistently finances approximately 50% of its assets through debt, indicating that asset accumulation has largely kept pace with the growth of liabilities to maintain a stable solvency position.
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Debt to Assets (including Operating Lease Liability)
IQVIA Holdings Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt | 152) | 91) | 149) | 100) | 100) | |
| Current finance lease liabilities | 5) | 9) | —) | —) | —) | |
| Long-term debt, less current portion | 12,595) | 12,034) | 12,384) | 11,545) | 10,907) | |
| Long-term finance lease liabilities | 224) | 177) | 122) | —) | —) | |
| Total debt | 12,976) | 12,311) | 12,655) | 11,645) | 11,007) | |
| Current operating lease liabilities (included in Other current liabilities) | 111) | 140) | 156) | 153) | —) | |
| Long-term operating lease liabilities | 264) | 313) | 371) | 396) | —) | |
| Total debt (including operating lease liability) | 13,351) | 12,764) | 13,182) | 12,194) | 11,007) | |
| Total assets | 25,337) | 24,689) | 24,564) | 23,251) | 22,549) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.53 | 0.52 | 0.54 | 0.52 | 0.49 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 0.46 | 0.53 | — | — | — | |
| Amgen Inc. | 0.61 | 0.56 | — | — | — | |
| Bristol-Myers Squibb Co. | 0.42 | 0.42 | — | — | — | |
| Danaher Corp. | 0.25 | 0.28 | — | — | — | |
| Eli Lilly & Co. | 0.34 | 0.36 | — | — | — | |
| Gilead Sciences Inc. | 0.41 | 0.40 | — | — | — | |
| Johnson & Johnson | 0.22 | 0.19 | — | — | — | |
| Merck & Co. Inc. | 0.29 | 0.33 | — | — | — | |
| Pfizer Inc. | 0.20 | 0.23 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.11 | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.37 | 0.38 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 0.05 | 0.07 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.32 | 0.34 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.29 | 0.31 | — | — | — | |
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).
1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 13,351 ÷ 25,337 = 0.53
2 Click competitor name to see calculations.
The solvency profile demonstrates a period of moderate expansion in both obligations and assets from 2018 through 2022. While total debt and total assets both increased over the five-year period, the debt-to-assets ratio indicates an initial shift toward a higher leverage position that subsequently stabilized.
- Total Debt Trends
- Total debt, including operating lease liabilities, increased from 11,007 million US dollars in 2018 to 13,351 million US dollars in 2022. A consistent upward trend was observed through 2020, followed by a slight contraction in 2021 to 12,764 million US dollars, before reaching its highest point in 2022.
- Total Asset Growth
- Total assets exhibited a steady year-over-year increase throughout the analyzed period, rising from 22,549 million US dollars in 2018 to 25,337 million US dollars in 2022. This consistent growth reflects a continuous expansion of the organization's asset base.
- Debt to Assets Ratio Analysis
- The debt-to-assets ratio rose from 0.49 in 2018 to a peak of 0.54 in 2020, signaling that debt accumulation outpaced asset growth during the first three years. Following this peak, the ratio stabilized, recording 0.52 in 2021 and 0.53 in 2022. This suggests a maintained capital structure where approximately 53% of total assets are financed through debt and operating lease liabilities.
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Financial Leverage
IQVIA Holdings Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 25,337) | 24,689) | 24,564) | 23,251) | 22,549) | |
| Equity attributable to IQVIA Holdings Inc.’s stockholders | 5,765) | 6,042) | 6,001) | 6,003) | 6,714) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 4.39 | 4.09 | 4.09 | 3.87 | 3.36 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| AbbVie Inc. | 8.04 | 9.51 | — | — | — | |
| Amgen Inc. | 17.79 | 9.13 | — | — | — | |
| Bristol-Myers Squibb Co. | 3.12 | 3.04 | — | — | — | |
| Danaher Corp. | 1.68 | 1.84 | — | — | — | |
| Eli Lilly & Co. | 4.65 | 5.44 | — | — | — | |
| Gilead Sciences Inc. | 2.97 | 3.23 | — | — | — | |
| Johnson & Johnson | 2.44 | 2.46 | — | — | — | |
| Merck & Co. Inc. | 2.37 | 2.77 | — | — | — | |
| Pfizer Inc. | 2.06 | 2.35 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 1.29 | 1.36 | — | — | — | |
| Thermo Fisher Scientific Inc. | 2.21 | 2.33 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 1.30 | 1.33 | — | — | — | |
| Financial Leverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 2.62 | 2.86 | — | — | — | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.57 | 2.69 | — | — | — | |
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).
1 2022 Calculation
Financial leverage = Total assets ÷ Equity attributable to IQVIA Holdings Inc.’s stockholders
= 25,337 ÷ 5,765 = 4.39
2 Click competitor name to see calculations.
An upward trend in financial leverage is observed over the five-year period from 2018 to 2022, indicating a systematic increase in the reliance on debt to finance the organization's asset base. The financial leverage ratio rose steadily from 3.36 in 2018 to 4.39 by the end of 2022, signifying a higher risk profile regarding solvency and debt obligations.
- Asset Growth
- Total assets experienced consistent growth throughout the analyzed period, increasing from US$ 22,549 million in 2018 to US$ 25,337 million in 2022. This represents a steady expansion of the company's resource base.
- Equity Trends
- Equity attributable to stockholders exhibited an overall decline, falling from US$ 6,714 million in 2018 to US$ 5,765 million in 2022. A significant decrease occurred between 2018 and 2019, followed by a period of relative stagnation before a further decline in 2022.
- Financial Leverage Ratio Analysis
- The leverage ratio increased from 3.36 in 2018 to 4.39 in 2022. This progression is driven by the divergence between growing total assets and shrinking stockholder equity. The stability of the ratio at 4.09 during 2020 and 2021 suggests a temporary plateau in the leverage trajectory before it climbed again in the final year.
The combination of expanding assets and contracting equity confirms that the growth in the balance sheet has been funded primarily through liabilities rather than equity contributions or retained earnings. This trajectory suggests an intensifying financial leverage strategy that increases the company's fixed financial obligations relative to its equity cushion.
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Interest Coverage
IQVIA Holdings Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to IQVIA Holdings Inc. | 1,091) | 966) | 279) | 191) | 259) | |
| Add: Net income attributable to noncontrolling interest | —) | 5) | 29) | 36) | 25) | |
| Add: Income tax expense | 260) | 163) | 72) | 116) | 59) | |
| Add: Interest expense | 416) | 375) | 416) | 447) | 414) | |
| Earnings before interest and tax (EBIT) | 1,767) | 1,509) | 796) | 790) | 757) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 4.25 | 4.02 | 1.91 | 1.77 | 1.83 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| AbbVie Inc. | 7.04 | 6.36 | — | — | — | |
| Amgen Inc. | 6.22 | 6.60 | — | — | — | |
| Bristol-Myers Squibb Co. | 7.26 | 7.07 | — | — | — | |
| Danaher Corp. | 40.30 | 32.92 | — | — | — | |
| Eli Lilly & Co. | 21.53 | 19.12 | — | — | — | |
| Gilead Sciences Inc. | 7.22 | 9.27 | — | — | — | |
| Johnson & Johnson | 79.71 | 125.46 | — | — | — | |
| Merck & Co. Inc. | 18.09 | 18.22 | — | — | — | |
| Pfizer Inc. | 29.05 | 19.83 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 82.80 | 163.75 | — | — | — | |
| Thermo Fisher Scientific Inc. | 11.56 | 17.49 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 78.23 | 45.40 | — | — | — | |
| Interest Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 15.40 | 14.91 | — | — | — | |
| Interest Coverage, Industry | ||||||
| Health Care | 14.75 | 14.14 | — | — | — | |
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).
1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 1,767 ÷ 416 = 4.25
2 Click competitor name to see calculations.
The company's solvency position regarding interest obligations has strengthened significantly between 2018 and 2022. This improvement is primarily attributed to a substantial increase in operating profitability, which has outpaced the relatively stable interest costs incurred over the same period.
- Earnings Before Interest and Tax (EBIT)
- A strong upward trend in EBIT is observed, particularly starting in 2021. After a period of modest growth between 2018 and 2020—rising from US$ 757 million to US$ 796 million—earnings experienced a sharp acceleration. EBIT increased to US$ 1,509 million in 2021 and further grew to US$ 1,767 million by December 31, 2022, reflecting a marked expansion in operational earning capacity.
- Interest Expense
- Interest expenses remained relatively stable throughout the five-year period. Values fluctuated within a narrow range, peaking at US$ 447 million in 2019 and reaching a minimum of US$ 375 million in 2021, before closing at US$ 416 million in 2022. The consistency of these expenses indicates that the improvement in solvency was not driven by debt reduction or lower interest rates, but by increased earnings.
- Interest Coverage Ratio
- The interest coverage ratio reflects a transition from a tight margin to a robust solvency position. From 2018 to 2020, the ratio remained low, fluctuating between 1.77 and 1.91. A significant shift occurred in 2021, where the ratio jumped to 4.02, eventually reaching 4.25 in 2022. This progression indicates that the company's capacity to cover its interest payments from operating profits has more than doubled, substantially reducing financial risk.
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Fixed Charge Coverage
IQVIA Holdings Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to IQVIA Holdings Inc. | 1,091) | 966) | 279) | 191) | 259) | |
| Add: Net income attributable to noncontrolling interest | —) | 5) | 29) | 36) | 25) | |
| Add: Income tax expense | 260) | 163) | 72) | 116) | 59) | |
| Add: Interest expense | 416) | 375) | 416) | 447) | 414) | |
| Earnings before interest and tax (EBIT) | 1,767) | 1,509) | 796) | 790) | 757) | |
| Add: Operating lease cost | 171) | 184) | 209) | 193) | 197) | |
| Earnings before fixed charges and tax | 1,938) | 1,693) | 1,005) | 983) | 954) | |
| Interest expense | 416) | 375) | 416) | 447) | 414) | |
| Operating lease cost | 171) | 184) | 209) | 193) | 197) | |
| Fixed charges | 587) | 559) | 625) | 640) | 611) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 3.30 | 3.03 | 1.61 | 1.54 | 1.56 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| AbbVie Inc. | 6.54 | 5.90 | — | — | — | |
| Amgen Inc. | 5.52 | 5.67 | — | — | — | |
| Bristol-Myers Squibb Co. | 6.30 | 6.01 | — | — | — | |
| Danaher Corp. | 13.41 | 10.85 | — | — | — | |
| Eli Lilly & Co. | 15.17 | 13.33 | — | — | — | |
| Gilead Sciences Inc. | 6.30 | 8.15 | — | — | — | |
| Johnson & Johnson | 38.72 | 48.16 | — | — | — | |
| Merck & Co. Inc. | 13.69 | 13.08 | — | — | — | |
| Pfizer Inc. | 18.79 | 14.22 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 68.67 | 138.96 | — | — | — | |
| Thermo Fisher Scientific Inc. | 8.12 | 12.19 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 47.97 | 29.62 | — | — | — | |
| Fixed Charge Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 11.85 | 11.49 | — | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 10.95 | 10.48 | — | — | — | |
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).
1 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,938 ÷ 587 = 3.30
2 Click competitor name to see calculations.
Between 2018 and 2022, a substantial improvement in the solvency profile is evident, characterized by a significant expansion in the capacity to meet fixed financial obligations.
- Earnings before fixed charges and tax
- A consistent upward trajectory is observed in earnings, which grew from US$ 954 million in 2018 to US$ 1,938 million in 2022. This growth was particularly aggressive between 2020 and 2021, where earnings increased by approximately 68%, reflecting a significant strengthening of operational cash flow available for debt service.
- Fixed charges
- Fixed charges remained relatively stable throughout the period, fluctuating minimally between a high of US$ 640 million in 2019 and a low of US$ 559 million in 2021. The stability of these charges, while earnings grew rapidly, served as a primary catalyst for the improvement in solvency ratios.
- Fixed charge coverage ratio
- The coverage ratio remained relatively flat between 2018 and 2020, hovering between 1.54 and 1.61. However, a sharp inflection point occurred in 2021, with the ratio climbing to 3.03, and further increasing to 3.30 by the end of 2022. This indicates that by 2022, earnings were more than three times the amount required to cover fixed charges, representing a marked reduction in financial risk compared to the 2018-2020 period.
The convergence of accelerating earnings growth and disciplined management of fixed costs resulted in a more than twofold increase in the fixed charge coverage ratio over the five-year span, significantly enhancing the organization's long-term financial stability.
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