Medpace Holdings Inc (MEDP)
Receivables 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 |
| Receivables | US$ in thousands | 296,443 | 298,400 | 253,404 | 186,432 | 160,962 |
| Receivables turnover | 7.11 | 6.31 | 6.00 | 6.14 | 5.76 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,108,550K ÷ $296,443K
= 7.11
The receivables turnover ratio for Medpace Holdings Inc has shown a consistent upward trend over the past five years. Starting at 5.76 in December 31, 2020, it increased to 7.11 by December 31, 2024. This indicates that the company is able to convert its accounts receivable into cash more efficiently each year.
A higher receivables turnover ratio signifies that the company is collecting its receivables more quickly, which can be indicative of effective credit policies and strong customer payment practices. A rising trend in this ratio can also suggest improving liquidity and better management of working capital.
Overall, the increasing trend in the receivables turnover ratio for Medpace Holdings Inc demonstrates efficient management of accounts receivable and a healthy financial position in terms of collecting payments from customers.
Peer comparison
Dec 31, 2024