Medpace Holdings Inc (MEDP)

Receivables 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
Receivables	US$ in thousands	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	155,662	140,189	149,860	129,624
Receivables turnover		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	5.53	5.87	5.25	5.73

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,899,742K ÷ $298,400K
= 6.37

Medpace Holdings Inc has shown a consistent and improving trend in its receivables turnover ratio over the past eight quarters. The receivables turnover ratio measures how efficiently the company is able to collect on its accounts receivable during a specific period.

The trend shows a gradual increase, starting at 5.40 in Q1 2022 and peaking at 6.32 in Q4 2023. This indicates that the company has been able to collect its accounts receivable more quickly over time. A higher receivables turnover ratio is generally viewed positively as it suggests better cash flow management and lower credit risk.

Overall, the improving trend in Medpace Holdings Inc's receivables turnover ratio signals effective management of its accounts receivable and a healthy liquidity position. It indicates that the company is efficiently converting its credit sales into cash, which could potentially lead to increased working capital and profitability in the long run.