Medpace Holdings Inc (MEDP)

Working capital 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
Total current assets US$ in thousands 1,029,230 1,032,600 872,523 744,902 593,828 448,881 378,927 367,622 333,962 337,741 328,887 355,969 690,912 641,220 550,100 533,380 473,651 395,005 319,082 303,002
Total current liabilities US$ in thousands 1,104,550 1,041,350 993,088 956,645 925,131 848,518 852,437 881,889 803,470 820,868 878,959 579,428 557,217 517,182 472,607 447,306 440,110 358,396 337,984 338,651
Working capital turnover — — — — — — — — — — — — 8.57 8.82 13.28 11.10 27.62 24.48 — —

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,108,554K ÷ ($1,029,230K – $1,104,550K)
= —

The working capital turnover ratio for Medpace Holdings Inc provides insight into how efficiently the company is utilizing its working capital to generate sales revenue.

From the data provided, we can see fluctuations in the working capital turnover ratio over the reporting periods. For instance, in September 2020 and December 2020, the company had relatively high working capital turnover ratios of 24.48 and 27.62, respectively. This indicates that during these periods, Medpace was able to efficiently use its working capital to generate revenue.

However, the working capital turnover ratio declined in subsequent periods, reaching 8.57 in December 2021. This signifies that the company may have faced challenges in converting its working capital into sales during that period.

It is important for Medpace Holdings Inc to closely monitor its working capital turnover ratio as it reflects the efficiency of its working capital management practices. A consistently high ratio indicates effective utilization of resources, while a declining ratio may point to potential inefficiencies that need to be addressed.