Medpace Holdings Inc (MEDP)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	669,436	245,449	28,265	461,304	277,766
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	1,104,550	925,131	803,470	557,217	440,110
Cash ratio		0.61	0.27	0.04	0.83	0.63

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($669,436K + $—K) ÷ $1,104,550K
= 0.61

The cash ratio of Medpace Holdings Inc has shown some fluctuations over the years. It stood at 0.63 on December 31, 2020, indicating that the company had $0.63 in cash and cash equivalents for every $1 of current liabilities. By the end of 2021, the ratio improved to 0.83, suggesting a stronger liquidity position.

However, there was a significant drop in the cash ratio to 0.04 by December 31, 2022, which may raise concerns about the company's ability to cover its short-term obligations with available cash. The ratio recovered to 0.27 by the end of 2023, showing a slight improvement in liquidity.

By December 31, 2024, the cash ratio increased to 0.61, indicating a healthier cash position compared to the previous year. Overall, fluctuations in the cash ratio of Medpace Holdings Inc reflect changes in its cash reserves relative to its current liabilities, emphasizing the importance of monitoring liquidity to ensure the company's ability to meet its short-term financial obligations.