Medpace Holdings Inc (MEDP)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		6.37	6.20	6.24	6.24	5.88	5.57	5.71	5.41	6.14	5.87	6.37	5.97	5.76	6.68	6.93	6.53	5.53	5.87	5.25	5.73
DSO	days	57.33	58.83	58.46	58.52	62.13	65.55	63.91	67.46	59.42	62.18	57.29	61.12	63.42	54.61	52.68	55.86	65.99	62.16	69.57	63.74

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.37
= 57.33

Days Sales Outstanding (DSO) is a crucial metric that indicates the average number of days it takes for a company to collect payment after making a sale. A lower DSO is typically preferred as it signifies quicker collection of accounts receivable and better cash flow management.

Analyzing the DSO trend for Medpace Holdings Inc over the past eight quarters shows a generally positive performance. From Q1 2022 to Q4 2023, the DSO has decreased from 67.61 days to 57.75 days. This downward trend suggests an improvement in the company's accounts receivable management efficiency.

While there was a slight increase in DSO in Q3 2022 and Q4 2022, the trend then resumed its decline in subsequent quarters. It is important to note that the DSO has stayed consistently below 70 days throughout the period under review, indicating efficient collection practices.

Overall, the decreasing trend of DSO for Medpace Holdings Inc suggests effective management of accounts receivable and timely collection of payments, which is a positive indicator of the company's financial health and operational efficiency in managing its working capital.