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IQV (IQVIA Holdings) Interest Coverage : 3.36 (As of Jun. 2024)


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What is IQVIA Holdings Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. IQVIA Holdings's Operating Income for the three months ended in Jun. 2024 was $548 Mil. IQVIA Holdings's Interest Expense for the three months ended in Jun. 2024 was $-163 Mil. IQVIA Holdings's interest coverage for the quarter that ended in Jun. 2024 was 3.36. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for IQVIA Holdings's Interest Coverage or its related term are showing as below:

IQV' s Interest Coverage Range Over the Past 10 Years
Min: 1.88   Med: 3.42   Max: 6.71
Current: 3.04


IQV's Interest Coverage is ranked worse than
80% of 95 companies
in the Medical Diagnostics & Research industry
Industry Median: 13.94 vs IQV: 3.04

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


IQVIA Holdings Interest Coverage Historical Data

The historical data trend for IQVIA Holdings's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

IQVIA Holdings Interest Coverage Chart

IQVIA Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.91 1.88 3.77 4.39 3.07

IQVIA Holdings Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.22 2.82 2.86 3.14 3.36

Competitive Comparison of IQVIA Holdings's Interest Coverage

For the Diagnostics & Research subindustry, IQVIA Holdings's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


IQVIA Holdings's Interest Coverage Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, IQVIA Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where IQVIA Holdings's Interest Coverage falls into.



IQVIA Holdings Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

IQVIA Holdings's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, IQVIA Holdings's Interest Expense was $-672 Mil. Its Operating Income was $2,061 Mil. And its Long-Term Debt & Capital Lease Obligation was $13,178 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*2061/-672
=3.07

IQVIA Holdings's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the three months ended in Jun. 2024, IQVIA Holdings's Interest Expense was $-163 Mil. Its Operating Income was $548 Mil. And its Long-Term Debt & Capital Lease Obligation was $12,283 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*548/-163
=3.36

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


IQVIA Holdings  (NYSE:IQV) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


IQVIA Holdings Interest Coverage Related Terms

Thank you for viewing the detailed overview of IQVIA Holdings's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


IQVIA Holdings Business Description

Traded in Other Exchanges
Address
2400 Ellis Road, Durham, NC, USA, 27703
IQVIA is the result of the 2016 merger of Quintiles, a leading global contract research organization, and IMS Health, a leading healthcare data and analytics provider. The research and development segment focuses primarily on providing outsourced late-stage clinical trials for pharmaceutical, device, and diagnostic firms. The technology and analytics segment provides aggregated information and technology services to clients in the healthcare industry, including pharmaceutical companies, providers, payers, and policymakers, as well as data and analytics capabilities for clinical trials, including virtual trials. The company also has a small contract sales business.
Executives
Eric Sherbet officer: See Remarks 100 IMS DRIVE, PARSIPPANY NJ 07054-4235
Ari Bousbib director, officer: Chairman, CEO & Pres UNITED TECHNOLOGIES CORP, ONE FINANCIAL PLAZA, HARTFORD CT 06101
W Richard Staub officer: See Remarks
Kevin C Knightly officer: Pres Info & Tech Solutions 1499 POST ROAD, FAIRFIELD CT 06824
Panagos Constantinos officer: See Remarks 4280 EMPEROR BLVD, DURHAM NC 27703
Keriann Cherofsky officer: See Remarks 4280 EMPEROR BLVD, DURHAM NC 27703
Sheila A Stamps director C/O CIT GROUP, 1 CIT DRIVE, ATTN: GENERAL COUNSEL, LIVINGSTON NJ 07039
Morris Leslie Wims director 4280 EMPEROR BLVD, DURHAM NC 27703
John Connaughton director, 10 percent owner BAIN CAPITAL PARTNERS LLC, JOHN HANCOCK TOWER, 200 CLARENDON STREET, BOSTON MA 02116
Ronald E Bruehlman officer: See Remarks C/O IQVIA HOLDINGS, INC., 83 WOOSTER HEIGHTS ROAD, DANBURY CT 06810
Ronald A Rittenmeyer director 5400 LEGACY DRIVE, PLANO TX 75024
Tpg Group Holdings (sbs) Advisors, Inc. 10 percent owner C/O TPG GLOBAL, LLC, 301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Michael J Evanisko director BRAUN CONSULTING, 20 W KINZIE STREET SUITE 1600, CHICAGO IL 60610
Michael R Mcdonnell officer: Chief Financial Officer C/O IQVIA HOLDINGS INC., 83 WOOSTER HEIGHTS ROAD, DANBURY CT 06810
John M. Leonard director C/O INTELLIA THERAPEUTICS INC, 40 ERIE STREET, SUITE 130, CAMBRIDGE MA 02139