Medpace Holdings Inc (MEDP)
Total asset 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 |
| Total assets | US$ in thousands | 2,100,870 | 1,656,830 | 1,352,500 | 1,659,940 | 1,390,680 |
| Total asset turnover | 1.00 | 1.14 | 1.12 | 0.69 | 0.67 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,108,550K ÷ $2,100,870K
= 1.00
The total asset turnover ratio measures how efficiently a company utilizes its total assets to generate revenue.
Based on the data provided for Medpace Holdings Inc:
- In 2020, the total asset turnover ratio was 0.67, indicating that the company generated $0.67 in revenue for every $1 of total assets.
- In 2021, the ratio improved slightly to 0.69, showing a slight increase in asset utilization.
- A significant improvement was seen in 2022 and 2023, with ratios of 1.12 and 1.14 respectively. This suggests that the company became more efficient in generating revenue from its assets during these years.
- However, there was a slight decrease in efficiency in 2024, with a total asset turnover ratio of 1.00.
Overall, an increasing trend in total asset turnover ratios from 2020 to 2023 indicates improved efficiency in utilizing assets to generate revenue. However, the slight dip in 2024 may warrant further analysis to understand the factors influencing this change.
Peer comparison
Dec 31, 2024