Medpace Holdings Inc (MEDP)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	669,436	656,900	510,894	407,010	245,449	95,207	39,138	46,922	28,265	31,007	42,551	82,843	461,304	398,387	339,009	332,877	277,766	219,227	160,903	133,999
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		0.61	0.63	0.51	0.43	0.27	0.11	0.05	0.05	0.04	0.04	0.05	0.14	0.83	0.77	0.72	0.74	0.63	0.61	0.48	0.40

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 fluctuations over the period from March 2020 to December 2024. The ratio increased steadily from 0.40 in March 2020 to 0.83 in December 2021, indicating an improving liquidity position during this period. However, there was a significant decline in the cash ratio in the first half of 2022, dropping to 0.05 in June 2022, which might suggest potential liquidity challenges.

Subsequently, there was a slight recovery in the cash ratio for the rest of 2022 and into 2023, reaching 0.27 by December 2023. This improvement was followed by a more significant increase in the cash ratio to 0.61 by December 2024. Overall, a higher cash ratio indicates a healthier level of cash reserves relative to current liabilities, which is beneficial for meeting short-term financial obligations. However, it is important for the company to carefully manage its cash position to ensure stability and mitigate liquidity risks.