Medpace Holdings Inc (MEDP)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 50.25 | 47.85 | 35.15 | 36.13 | 28.14 | |
| Number of days of payables | days | 7.26 | 7.63 | 10.38 | 10.10 | 12.97 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 50.25
= 7.26
Medpace Holdings Inc's number of days of payables has been on a declining trend over the past five years, indicating that the company is taking fewer days to pay its suppliers. As of December 31, 2020, the company took around 12.97 days to pay its payables, which decreased to 10.10 days by December 31, 2021, and further to 10.38 days by December 31, 2022. The trend continued with the number of days of payables decreasing to 7.63 days by December 31, 2023, and to 7.26 days by December 31, 2024.
A decreasing number of days of payables can suggest improved efficiency in managing the company's working capital and cash flow, as the company is able to settle its payables more quickly. This trend may also indicate strong bargaining power with suppliers or better inventory management.
It is important to monitor this ratio over time to ensure that the company maintains a balance between managing payables effectively and maintaining good relationships with suppliers.
Peer comparison
Dec 31, 2024