Medpace Holdings Inc (MEDP)
Receivables turnover
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 2,108,554 | 2,068,966 | 2,028,148 | 1,960,912 | 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 |
Receivables | US$ in thousands | 296,443 | 311,466 | 301,108 | 279,166 | 298,400 | 292,773 | 275,058 | 257,746 | 253,404 | 249,086 | 225,695 | 224,759 | 186,432 | 186,378 | 161,489 | 159,997 | 160,962 | 134,087 | 127,286 | 136,374 |
Receivables turnover | 7.11 | 6.64 | 6.74 | 7.02 | 6.37 | 6.20 | 6.24 | 6.24 | 5.88 | 5.57 | 5.71 | 5.41 | 6.14 | 5.87 | 6.37 | 5.97 | 5.76 | 6.68 | 6.93 | 6.53 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,108,554K ÷ $296,443K
= 7.11
The receivables turnover ratio for Medpace Holdings Inc shows the number of times receivables are collected, converted to cash, or paid off over a specific period. A higher turnover ratio indicates that the company efficiently collects outstanding receivables.
Analyzing the trend in Medpace's receivables turnover ratio from March 31, 2020, to December 31, 2024, we observe some fluctuations. The ratio ranged from a low of 5.41 on March 31, 2022, to a high of 7.11 on December 31, 2024. Generally, the company's receivables turnover has been relatively stable, hovering around the range of 5.41 to 7.11.
It's worth noting that a higher receivables turnover ratio may indicate more effective credit policies and collection procedures, reflecting positively on Medpace's liquidity and efficiency in managing its accounts receivables. Conversely, a lower ratio might suggest delays in receiving payments from customers or less efficient collection processes.
Overall, while there have been fluctuations in Medpace's receivables turnover ratio over the analyzed period, the company has maintained a reasonably healthy turnover rate, which is important for ensuring smooth cash flows and financial stability.
Peer comparison
Dec 31, 2024