Medpace Holdings Inc (MEDP)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	1,899,742	1,816,339	1,717,384	1,607,723	1,488,796	1,387,029	1,289,052	1,216,138	1,145,156	1,094,017	1,028,823	955,525	926,439	896,133	881,998	891,107	860,969	823,198	786,213	742,253
Property, plant and equipment	US$ in thousands	120,589	114,764	114,817	113,755	109,849	104,719	103,538	98,529	93,153	87,703	86,195	84,504	85,017	71,472	65,954	50,015	47,292	43,715	39,749	37,639
Fixed asset turnover		15.75	15.83	14.96	14.13	13.55	13.25	12.45	12.34	12.29	12.47	11.94	11.31	10.90	12.54	13.37	17.82	18.21	18.83	19.78	19.72

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,899,742K ÷ $120,589K
= 15.75

The fixed asset turnover ratio measures the efficiency with which a company generates revenue from its investment in fixed assets. Medpace Holdings Inc has shown a consistently strong performance in this aspect over the quarters, with a gradual increase in the fixed asset turnover ratio.

From Q1 2022 to Q4 2023, the fixed asset turnover ratio has steadily improved from 12.31 to 15.64. This indicates that the company is effectively utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio suggests that the company is efficiently utilizing its fixed assets to generate sales.

Overall, the increasing trend in the fixed asset turnover ratio over the quarters reflects positively on Medpace Holdings Inc's operational efficiency and effective management of its fixed assets to drive revenue growth.