Medpace Holdings Inc (MEDP)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	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	131,920	79,290	20,098	30,127
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	343,002	314,392	296,073	264,541
Cash ratio		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	0.38	0.25	0.07	0.11

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 shown variability over the past eight quarters. The ratio ranged from a low of 0.10 in Q4 2022 to a high of 0.32 in Q4 2023. The cash ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio suggests a stronger liquidity position, as there is a larger proportion of cash available to cover short-term obligations.

In the latest quarter, Q4 2023, the cash ratio improved significantly to 0.32, indicating a substantial increase in the company's ability to meet its short-term obligations with its cash reserves. This may suggest prudent financial management or an increase in cash holdings. It is important to note that the cash ratio of 0.32 means that for every dollar of short-term liabilities, Medpace Holdings Inc had $0.32 in cash and cash equivalents available.

Overall, the trend in the cash ratio of Medpace Holdings Inc shows some fluctuations but has improved in the latest quarter, indicating a potentially strengthened liquidity position compared to previous quarters.