Medpace Holdings Inc (MEDP)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	1,029,230	593,828	333,962	690,912	473,651
Total current liabilities	US$ in thousands	1,104,550	925,131	803,470	557,217	440,110
Current ratio		0.93	0.64	0.42	1.24	1.08

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,029,230K ÷ $1,104,550K
= 0.93

The current ratio of Medpace Holdings Inc has shown some variability in recent years. As of December 31, 2020, the current ratio was 1.08, indicating that the company had just enough current assets to cover its current liabilities. By December 31, 2021, the current ratio had improved to 1.24, suggesting a stronger liquidity position. However, there was a significant decrease by December 31, 2022, with the current ratio dropping to 0.42, which may raise concerns about the company's ability to meet its short-term obligations.

Subsequently, there was an improvement in the current ratio to 0.64 by December 31, 2023, although it remained below the ideal ratio of 1. This improvement signifies a partial recovery in the liquidity position but still highlights potential liquidity risks. As of December 31, 2024, the current ratio further increased to 0.93, indicating continued progress in managing short-term obligations.

Overall, while there have been fluctuations in Medpace Holdings Inc's current ratio over the years, the company should aim to consistently maintain a current ratio above 1 to ensure a healthy liquidity position and meet its short-term financial obligations effectively.