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.