Medpace Holdings Inc (MEDP)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Receivables turnover		7.11	6.64	6.74	7.02	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
DSO	days	51.32	54.95	54.19	51.96	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

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.11
= 51.32

Days Sales Outstanding (DSO) is a key ratio that helps in evaluating how efficiently a company manages its accounts receivable. DSO represents the average number of days it takes for a company to collect payment after making a sale.

Analyzing the DSO trend of Medpace Holdings Inc from March 31, 2020, to December 31, 2024, reveals fluctuations in the collection period. The DSO ranged from a low of 51.32 days on December 31, 2024, to a high of 67.46 days on March 31, 2022.

Overall, there seems to be some volatility in Medpace's DSO figures, with periods of improvement followed by slight increases. Despite fluctuations, the company has managed to keep the DSO below 70 days, indicating its ability to collect receivables in a timely manner.

Despite the relatively stable collection period, it would be advisable for Medpace Holdings Inc to focus on maintaining an optimal DSO figure to ensure efficient cash flow management and healthy liquidity levels. Periodic monitoring and analysis of DSO can help identify potential inefficiencies in accounts receivable management and facilitate prompt actions to address any issues.