Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
IQVIA Holdings Inc., long-term (investment) activity 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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows a decline over the period, starting at 23.99 in 2018 and decreasing to 18.94 in 2022. After a slight increase from 23.99 to 24.21 in 2019, the ratio dropped significantly to 18.81 in 2020, followed by a modest recovery to 20.31 in 2021, and then a small decrease again in 2022.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This adjusted turnover ratio reveals a distinct downward trend from 2018 to 2020, falling from 23.99 to 10.57. It indicates the impact of incorporating operating lease assets, which reduces the turnover significantly. However, there is a gradual increase after 2020, reaching 13.20 by 2022, suggesting some improvement in asset utilization when including lease assets.
- Total Asset Turnover
- The total asset turnover exhibits a relatively stable pattern with slight fluctuations. Starting at 0.46 in 2018, it rose marginally to 0.48 in 2019, then declined back to 0.46 in 2020. The ratio increases more noticeably in 2021 and 2022, reaching 0.56 and 0.57 respectively, indicating improved efficiency in generating revenue from total assets during the recent years.
- Equity Turnover
- Equity turnover shows a consistent increase over the five-year period, beginning at 1.55 in 2018 and climbing steadily each year to reach 2.50 in 2022. This upward trend reflects increasing efficiency in utilizing equity to generate sales, with particularly strong growth from 2019 onwards.
Net Fixed Asset Turnover
IQVIA Holdings Inc., net fixed asset turnover 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) | ||||||
| Revenues | 14,410) | 13,874) | 11,359) | 11,088) | 10,412) | |
| Property and equipment, net, including finance lease right-of-use assets | 761) | 683) | 604) | 458) | 434) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 18.94 | 20.31 | 18.81 | 24.21 | 23.99 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| AbbVie Inc. | 11.76 | 11.00 | 8.73 | — | — | |
| Amgen Inc. | 4.57 | 4.69 | 4.96 | — | — | |
| Bristol-Myers Squibb Co. | 7.38 | 7.67 | 7.22 | — | — | |
| Danaher Corp. | 7.96 | 7.77 | 6.83 | — | — | |
| Eli Lilly & Co. | 2.81 | 3.15 | 2.83 | — | — | |
| Gilead Sciences Inc. | 4.93 | 5.27 | 4.90 | — | — | |
| Johnson & Johnson | 4.79 | 4.95 | 4.40 | — | — | |
| Merck & Co. Inc. | 2.77 | 2.53 | 2.67 | — | — | |
| Pfizer Inc. | 6.22 | 5.52 | 3.07 | — | — | |
| Regeneron Pharmaceuticals Inc. | 3.23 | 4.62 | 2.64 | — | — | |
| Thermo Fisher Scientific Inc. | 4.84 | 4.71 | 5.45 | — | — | |
| Vertex Pharmaceuticals Inc. | 8.06 | 6.92 | 6.47 | — | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 4.98 | 4.98 | 4.31 | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | 7.88 | 7.74 | 7.00 | — | — | |
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
Net fixed asset turnover = Revenues ÷ Property and equipment, net, including finance lease right-of-use assets
= 14,410 ÷ 761 = 18.94
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the five-year period ending in 2022.
- Revenues
- There is a steady upward trend in revenues from 2018 to 2022. The revenue increased from $10,412 million in 2018 to $14,410 million in 2022, representing a consistent growth trajectory with a particularly strong increase between 2020 and 2021.
- Property and Equipment, Net (including finance lease right-of-use assets)
- The net value of property and equipment has shown a continuous increase over the years. Starting from $434 million in 2018, it rose to $761 million by 2022. This steady growth indicates ongoing investments in fixed assets or capitalization of leased assets, suggesting expansion or modernization of physical resources.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio demonstrates some volatility. Initially, the ratio was high at 23.99 in 2018 and peaked slightly at 24.21 in 2019. However, there was a significant decline in 2020 to 18.81. Although there was a slight recovery in 2021 to 20.31, it decreased again to 18.94 in 2022. This downward shift compared to the earlier years indicates that revenue generation relative to the net fixed assets has decreased, implying either increasing asset base without proportional revenue growth or less efficient utilization of fixed assets.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
IQVIA Holdings Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 14,410) | 13,874) | 11,359) | 11,088) | 10,412) | |
| Property and equipment, net, including finance lease right-of-use assets | 761) | 683) | 604) | 458) | 434) | |
| Operating lease right-of-use assets | 331) | 406) | 471) | 496) | —) | |
| Property and equipment, net, including finance lease right-of-use assets (including operating lease, right-of-use asset) | 1,092) | 1,089) | 1,075) | 954) | 434) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 13.20 | 12.74 | 10.57 | 11.62 | 23.99 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| AbbVie Inc. | 10.24 | 9.57 | 7.46 | — | — | |
| Amgen Inc. | 4.13 | 4.23 | 4.58 | — | — | |
| Bristol-Myers Squibb Co. | 6.18 | 6.66 | 6.30 | — | — | |
| Danaher Corp. | 6.35 | 6.10 | 5.30 | — | — | |
| Eli Lilly & Co. | 2.63 | 2.93 | 2.63 | — | — | |
| Gilead Sciences Inc. | 4.51 | 4.77 | 4.34 | — | — | |
| Johnson & Johnson | 4.54 | 4.72 | 4.18 | — | — | |
| Merck & Co. Inc. | 2.60 | 2.33 | 2.43 | — | — | |
| Pfizer Inc. | 5.25 | 4.64 | 2.79 | — | — | |
| Regeneron Pharmaceuticals Inc. | 3.17 | 4.52 | 2.58 | — | — | |
| Thermo Fisher Scientific Inc. | 4.13 | 3.98 | 4.82 | — | — | |
| Vertex Pharmaceuticals Inc. | 6.13 | 5.32 | 4.83 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 4.48 | 4.45 | 3.91 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | 6.90 | 6.75 | 6.14 | — | — | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net, including finance lease right-of-use assets (including operating lease, right-of-use asset)
= 14,410 ÷ 1,092 = 13.20
2 Click competitor name to see calculations.
The financial data reveals multiple trends over the five-year period analyzed.
- Revenues
- There is a consistent upward trend in revenues from 2018 to 2022. Revenues increased from US$10,412 million in 2018 to US$14,410 million in 2022. This represents an overall growth of approximately 38.4%. The largest annual increase occurred between 2020 and 2021, where revenues rose from US$11,359 million to US$13,874 million, an increase of about 22.1%.
- Property and Equipment, Net (including finance lease right-of-use assets)
- Property and equipment showed a significant jump from 2018 to 2019, more than doubling from US$434 million to US$954 million. Following this sharp increase, the values continued to grow but at a much slower pace, reaching US$1,092 million by 2022. This indicates a substantial investment or revaluation during 2019 followed by stability in fixed asset levels in subsequent years.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio declined steeply from 23.99 in 2018 to 10.57 in 2020, then improved slightly to 13.2 by 2022. This ratio measures revenue generated per unit of net fixed assets. The initial decline suggests that the company's property and equipment base grew faster than revenues during the initial years, especially given the large increase in property and equipment value in 2019. The moderate recovery in the ratio after 2020 points to improved efficiency in generating revenue from fixed assets, though it remains well below the 2018 level.
Overall, the data indicates steady revenue growth driven by increased investment in property and equipment, with an initial reduction in fixed asset efficiency that has partially reversed in recent years. The substantial increase in fixed assets around 2019 likely reflects strategic capital expenditures or accounting changes that affected asset carrying values.
Total Asset Turnover
IQVIA Holdings Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 14,410) | 13,874) | 11,359) | 11,088) | 10,412) | |
| Total assets | 25,337) | 24,689) | 24,564) | 23,251) | 22,549) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.57 | 0.56 | 0.46 | 0.48 | 0.46 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| AbbVie Inc. | 0.42 | 0.38 | 0.30 | — | — | |
| Amgen Inc. | 0.38 | 0.40 | 0.39 | — | — | |
| Bristol-Myers Squibb Co. | 0.48 | 0.42 | 0.36 | — | — | |
| Danaher Corp. | 0.37 | 0.35 | 0.29 | — | — | |
| Eli Lilly & Co. | 0.58 | 0.58 | 0.53 | — | — | |
| Gilead Sciences Inc. | 0.43 | 0.40 | 0.36 | — | — | |
| Johnson & Johnson | 0.51 | 0.52 | 0.47 | — | — | |
| Merck & Co. Inc. | 0.54 | 0.46 | 0.52 | — | — | |
| Pfizer Inc. | 0.51 | 0.45 | 0.28 | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.42 | 0.63 | 0.50 | — | — | |
| Thermo Fisher Scientific Inc. | 0.46 | 0.41 | 0.47 | — | — | |
| Vertex Pharmaceuticals Inc. | 0.49 | 0.56 | 0.53 | — | — | |
| Total Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.47 | 0.45 | 0.39 | — | — | |
| Total Asset Turnover, Industry | ||||||
| Health Care | 0.66 | 0.62 | 0.57 | — | — | |
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
Total asset turnover = Revenues ÷ Total assets
= 14,410 ÷ 25,337 = 0.57
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues have demonstrated a consistent growth trajectory over the five-year period. Starting at $10,412 million in 2018, revenues increased annually, reaching $14,410 million by the end of 2022. The most significant revenue growth occurred between 2020 and 2021, where there was an increase from $11,359 million to $13,874 million, indicating a notable expansion during that year.
- Total Assets Trends
- Total assets have shown a steady but moderate increase over the same period. From $22,549 million in 2018, total assets rose to $25,337 million in 2022. The growth in total assets is relatively stable, with slight increments each year, which suggests controlled asset expansion possibly in line with operational needs or strategic investments.
- Total Asset Turnover Ratio
- The total asset turnover ratio, which measures the efficiency in using assets to generate revenue, fluctuated slightly but shows overall improvement. It ranged from 0.46 in 2018 and 2020 to a higher ratio of 0.57 in 2022. Notably, the ratio increased significantly starting in 2021, aligning with the period of higher revenue growth, suggesting enhanced asset utilization efficiency.
- Summary of Financial Trends
- The data indicates that the company has effectively increased its revenues at a faster pace than its asset base, resulting in improved asset turnover efficiency, especially in the latter years. This trend points to enhanced operational effectiveness and possibly better management of resources to support revenue growth without proportionally large increases in asset investments.
Equity Turnover
IQVIA Holdings Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 14,410) | 13,874) | 11,359) | 11,088) | 10,412) | |
| Equity attributable to IQVIA Holdings Inc.’s stockholders | 5,765) | 6,042) | 6,001) | 6,003) | 6,714) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 2.50 | 2.30 | 1.89 | 1.85 | 1.55 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| AbbVie Inc. | 3.36 | 3.65 | 3.50 | — | — | |
| Amgen Inc. | 6.77 | 3.63 | 2.58 | — | — | |
| Bristol-Myers Squibb Co. | 1.49 | 1.29 | 1.12 | — | — | |
| Danaher Corp. | 0.63 | 0.65 | 0.56 | — | — | |
| Eli Lilly & Co. | 2.68 | 3.15 | 4.35 | — | — | |
| Gilead Sciences Inc. | 1.27 | 1.28 | 1.34 | — | — | |
| Johnson & Johnson | 1.24 | 1.27 | 1.31 | — | — | |
| Merck & Co. Inc. | 1.29 | 1.28 | 1.90 | — | — | |
| Pfizer Inc. | 1.06 | 1.06 | 0.67 | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.54 | 0.86 | 0.77 | — | — | |
| Thermo Fisher Scientific Inc. | 1.02 | 0.96 | 0.93 | — | — | |
| Vertex Pharmaceuticals Inc. | 0.64 | 0.75 | 0.71 | — | — | |
| Equity Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.24 | 1.27 | 1.22 | — | — | |
| Equity Turnover, Industry | ||||||
| Health Care | 1.69 | 1.67 | 1.63 | — | — | |
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
Equity turnover = Revenues ÷ Equity attributable to IQVIA Holdings Inc.’s stockholders
= 14,410 ÷ 5,765 = 2.50
2 Click competitor name to see calculations.
- Revenues
- The revenues demonstrate a consistently upward trend over the five-year period. Starting from 10,412 million USD in 2018, revenues gradually increased each year, reaching 11,088 million USD in 2019 and 11,359 million USD in 2020. The most notable growth occurred in 2021, with revenues rising to 13,874 million USD, followed by a continued increase to 14,410 million USD in 2022. This reflects steady business expansion and increasing sales volume or pricing during the time frame.
- Equity Attributable to IQVIA Holdings Inc.’s Stockholders
- The equity attributable to stockholders displays a declining trend from 2018 through 2022. Beginning at 6,714 million USD in 2018, it decreased to 6,003 million USD in 2019 and remained relatively flat at approximately 6,001 million USD in 2020. In 2021, equity showed a marginal increase to 6,042 million USD but then decreased again to 5,765 million USD in 2022. Overall, this indicates a reduction in net assets available to shareholders over the period, possibly due to share repurchases, dividend payments exceeding net income, or other comprehensive losses.
- Equity Turnover
- The equity turnover ratio shows a clear upward trajectory, moving from 1.55 in 2018 to 1.85 in 2019 and then slightly increasing to 1.89 in 2020. A more pronounced rise is observed in 2021 and 2022, where the ratio reached 2.3 and 2.5 respectively. This indicates improved efficiency in generating revenues from shareholders’ equity, implying that the company is utilizing its equity base more effectively to produce sales. The increase in equity turnover despite declining equity suggests stronger operational performance relative to the equity invested.