Medpace Holdings Inc (MEDP)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,883,940	1,519,300	1,145,160	926,439	860,388
Total current assets	US$ in thousands	593,828	333,962	690,912	473,651	317,028
Total current liabilities	US$ in thousands	925,131	803,470	557,217	440,110	343,002
Working capital turnover		—	—	8.57	27.62	—

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,883,940K ÷ ($593,828K – $925,131K)
= —

The working capital turnover ratio for Medpace Holdings Inc was not available for the years 2023 and 2019. However, for the years 2022, 2021, and 2020, the company had working capital turnover ratios of 8.54, 27.61, and not available, respectively.

The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio typically indicates that the company is effectively managing its working capital and generating sales from its assets.

In the case of Medpace Holdings Inc, the steep decline in the working capital turnover ratio from 27.61 in 2020 to 8.54 in 2021 raises concerns about the company's efficiency in utilizing its working capital to generate sales. It may imply that the company is not efficiently managing its working capital or experiencing difficulties in converting its current assets into sales.

Further analysis would be needed to understand the reasons behind this significant decrease in the working capital turnover ratio and to assess the overall financial health and operational efficiency of Medpace Holdings Inc.