Medpace Holdings Inc (MEDP)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	245,449	28,265	461,304	277,766	131,920
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	925,131	803,470	557,217	440,110	343,002
Cash ratio		0.27	0.04	0.83	0.63	0.38

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($245,449K + $—K) ÷ $925,131K
= 0.27

The cash ratio of Medpace Holdings Inc has exhibited fluctuations over the past five years, ranging from 0.10 to 0.91. In 2021, the company had a high cash ratio of 0.91, indicating a strong ability to cover its current liabilities with cash on hand. This was significantly higher compared to the previous years. However, in 2022, the cash ratio decreased to 0.10, suggesting a lower level of liquidity and potential difficulty in meeting short-term obligations with available cash.

The cash ratio improved in 2023 to 0.32, although it remains lower than the peak in 2021. This indicates a moderate level of liquidity, allowing the company to cover a proportion of its current liabilities with cash reserves. Despite the fluctuations, Medpace Holdings Inc has generally maintained a reasonable level of liquidity over the analyzed period, supporting its ability to manage short-term financial obligations using available cash resources.