IQVNEUTRAL

Return on Equity (ROE)

22.5%

Updated 174h ago

Sector Performance

71th percentile

IQV

22.5%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from each dollar of shareholder equity — a 22.5% ROE means the firm earns $0.225 for every $1 of equity.

This is well above the sector median of 14.2%, and places IQV in the 72nd percentile among its peers, indicating above-average profitability efficiency. The trend is limited: year-over-year change is not available, but the quarter-over-quarter increase of +7.7% (from 20.9% to 22.5%) shows recent improvement in earnings relative to equity. Given the elevated level combined with only a short-term uptrend, the high ROE suggests limited immediate risk of capital inefficiency, but the lack of longer trend data tempers the opportunity signal. This metric supports the overall NEUTRAL verdict, as the strong current performance is positive yet insufficient to shift the view to bullish without more historical context.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about IQV?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are IQV's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.