Medpace Holdings Inc (MEDP)

Short-term

Turnover ratios

Based on the provided data for Medpace Holdings Inc, we can analyze the activity ratios as follows:

1. Inventory Turnover:
- Unfortunately, there is no data available for the inventory turnover ratio for any of the years from 2020 to 2024. This indicates that we do not have visibility into how efficiently the company is managing its inventory levels and turning them into sales during these periods.

2. Receivables Turnover:
- The receivables turnover ratio measures how effectively a company is collecting its accounts receivables during a specific period. The data shows an increasing trend in Medpace Holdings Inc's receivables turnover ratio from 5.76 in 2020 to 7.11 in 2024. This suggests that the company has been collecting its receivables more efficiently over the years, indicating better management of credit sales and collection processes.

3. Payables Turnover:
- The payables turnover ratio reflects how well a company is managing its accounts payables and how quickly it is paying off its suppliers. Medpace Holdings Inc's payables turnover ratio has shown a consistent upward trend from 28.14 in 2020 to 50.25 in 2024. This indicates that the company is taking longer to pay its suppliers, which could be a positive sign as it may imply better cash flow management.

4. Working Capital Turnover:
- The working capital turnover ratio indicates how efficiently a company is using its working capital to generate sales. In this case, the data provided shows that the working capital turnover ratio declined significantly from 27.62 in 2020 to 8.57 in 2021. There is no data available for the years 2022 to 2024, but this decline suggests a potential decrease in efficiency in using working capital to generate revenue during the period of 2020-2021.

In conclusion, while the data for inventory turnover is missing, the trends in receivables turnover, payables turnover, and working capital turnover for Medpace Holdings Inc suggest improvements in collections, potential positive cash flow management through delayed payments to suppliers, and a decrease in working capital efficiency that could be further explored.

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Average number of days

Based on the provided data for Medpace Holdings Inc, the activity ratios can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- Unfortunately, specific data for the Days of Inventory on Hand was not available for the years provided (2020, 2021, 2022, 2023, and 2024). This makes it difficult to assess the efficiency of Medpace Holdings Inc in managing its inventory levels and turnover.

2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding, which measures how quickly a company collects its accounts receivable, improved from 63.42 days in 2020 to 51.32 days in 2024. This decrease indicates that Medpace Holdings Inc has been more efficient in collecting payments from its customers over the years, leading to improved cash flow and liquidity.

3. Number of Days of Payables:
- The Number of Days of Payables, representing how long a company takes to pay its suppliers, decreased significantly from 12.97 days in 2020 to 7.26 days in 2024. This reduction suggests that Medpace Holdings Inc has been able to extend its payment terms, potentially benefiting from improved working capital management and cash flow.

In conclusion, while the specific data for the Days of Inventory on Hand was not available, the improvements in Days of Sales Outstanding and a significant decrease in the Number of Days of Payables indicate that Medpace Holdings Inc has shown efficiency in managing its receivables and payables, which can have positive implications on its overall financial health and working capital management.

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Long-term

Based on the provided data, we can analyze the long-term activity ratios of Medpace Holdings Inc, focusing on the fixed asset turnover and total asset turnover ratios.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio indicates how efficiently the firm is utilizing its fixed assets to generate sales. A higher ratio signifies better efficiency.
- From 2020 to 2024, the fixed asset turnover ratio has shown a consistent increasing trend, from 10.90 to 17.06. This indicates that the company's fixed assets are being utilized more effectively over time to generate revenue.
- The significant increase in the ratio implies that Medpace Holdings Inc has been able to generate more sales relative to its investment in fixed assets, which is a positive trend for the company's operational efficiency.

2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently a company is using all its assets to generate revenue. A higher ratio suggests better asset utilization.
- The total asset turnover ratio for Medpace Holdings Inc has varied over the years, with a slight increase from 2020 to 2023 and a slight decrease in 2024.
- The ratio peaked in 2023 at 1.14, indicating that the company generated $1.14 in sales for every dollar of assets it owned. This suggests efficient asset management in that year.
- However, the ratio dropped to 1.00 in 2024, implying a slight decrease in the efficiency of asset utilization compared to the previous year.

In conclusion, Medpace Holdings Inc has demonstrated improved efficiency in utilizing its fixed assets, as evidenced by the increasing trend in the fixed asset turnover ratio. While the total asset turnover ratio has shown some fluctuations, the company generally maintained a reasonably efficient utilization of its total assets over the years, except for a slight decrease in 2024. Monitoring these ratios can provide valuable insights into the company's operational performance and asset management strategies.