Medpace Holdings Inc (MEDP)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,108,550 | 1,883,940 | 1,519,300 | 1,145,160 | 926,439 |
| Property, plant and equipment | US$ in thousands | 123,615 | 120,589 | 109,849 | 93,153 | 85,017 |
| Fixed asset turnover | 17.06 | 15.62 | 13.83 | 12.29 | 10.90 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,108,550K ÷ $123,615K
= 17.06
Fixed asset turnover is a crucial ratio that measures a company's efficiency in utilizing its fixed assets to generate revenue. For Medpace Holdings Inc, the fixed asset turnover has been on an upward trend over the past five years, starting at 10.90 in 2020 and steadily increasing to 17.06 in 2024. This indicates that the company has been able to generate more revenue relative to its investment in fixed assets over the years. The rising trend suggests improved operational efficiency and optimal utilization of fixed assets in revenue generation. A higher fixed asset turnover ratio indicates that the company is effectively using its fixed assets to generate sales, which can be a positive signal for investors and stakeholders.
Peer comparison
Dec 31, 2024