Medpace Holdings Inc (MEDP)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 51.32 | 57.81 | 60.88 | 59.42 | 63.42 |
| Number of days of payables | days | 7.26 | 7.63 | 10.38 | 10.10 | 12.97 |
| Cash conversion cycle | days | 44.05 | 50.18 | 50.49 | 49.32 | 50.45 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 51.32 – 7.26
= 44.05
The cash conversion cycle of Medpace Holdings Inc has shown some fluctuations over the past five years. Starting at 50.45 days on December 31, 2020, it decreased slightly to 49.32 days on December 31, 2021, before increasing to 50.49 days on December 31, 2022. Subsequently, on December 31, 2023, the cycle remained relatively consistent at 50.18 days. However, there was a significant improvement seen on December 31, 2024, with the cycle decreasing to 44.05 days.
Overall, the trend indicates a mix of stability and efficiency in managing the company's cash conversion cycle. The decrease in the cycle duration in 2024 suggests that Medpace Holdings Inc has been improving its ability to convert its investments in inventory and accounts receivable into cash more rapidly, which is a positive sign for the company's liquidity and financial health.
Peer comparison
Dec 31, 2024