Medpace Holdings Inc (MEDP)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,883,940	1,519,300	1,145,160	926,439	860,388
Property, plant and equipment	US$ in thousands	120,589	109,849	93,153	85,017	47,292
Fixed asset turnover		15.62	13.83	12.29	10.90	18.19

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,883,940K ÷ $120,589K
= 15.62

Medpace Holdings Inc's fixed asset turnover has exhibited an overall increasing trend over the past five years. The ratio peaked at 18.21 in 2019 before experiencing a slight decline in the subsequent years. The figure stood at 15.64 in 2023, showing an improvement from the prior year's value of 13.29. This suggests that the company has been more efficient in utilizing its fixed assets to generate revenue in the most recent year, reflecting positively on its operational performance and asset management. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets invested, signaling effectiveness in capital utilization. Overall, the increasing trend in fixed asset turnover is indicative of Medpace Holdings Inc's improving operational efficiency and effective management of its fixed asset base.