Medpace Holdings Inc (MEDP)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.31	6.00	6.14	5.76	5.53
DSO	days	57.81	60.88	59.42	63.42	66.04

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.31
= 57.81

To analyze Medpace Holdings Inc's days of sales outstanding (DSO) over the past five years, we observe a fluctuating trend in the company's collection efficiency.

In 2019, the DSO stood at 65.99 days, indicating that, on average, it took the company around 65.99 days to collect its accounts receivable. This figure decreased in subsequent years, reaching 63.45 days in 2020, 59.57 days in 2021, and further dropping to 63.35 days in 2022, suggesting an improvement in collection efficiency.

However, in 2023, there was a slight increase in DSO to 57.75 days. This could be a cause for concern as a higher DSO may indicate potential issues with collecting receivables promptly, leading to cash flow challenges.

Overall, although there have been fluctuations in Medpace Holdings Inc's DSO over the years, the recent uptick in DSO warrants a closer examination of the company's accounts receivable management practices to ensure efficient cash flow management and liquidity.