Medpace Holdings Inc (MEDP)

Current 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
Total current assets	US$ in thousands	1,029,230	1,032,600	872,523	744,902	593,828	448,881	378,927	367,622	333,962	337,741	328,887	355,969	690,912	641,220	550,100	533,380	473,651	395,005	319,082	303,002
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
Current ratio		0.93	0.99	0.88	0.78	0.64	0.53	0.44	0.42	0.42	0.41	0.37	0.61	1.24	1.24	1.16	1.19	1.08	1.10	0.94	0.89

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 fluctuated over the reported periods, indicating varying levels of liquidity and ability to meet short-term obligations. Generally, a current ratio below 1 suggests potential difficulties in covering short-term liabilities with current assets alone.

The ratio was below 1 for several quarters in the most recent financial year, reaching its lowest point of 0.37 in June 30, 2022. This may raise concerns about the company's short-term financial health and ability to meet immediate obligations without additional resources.

However, the company made improvements in subsequent quarters, with the current ratio gradually increasing to 0.99 as of September 30, 2024. While still below the ideal threshold of 1, this upward trend indicates a positive development in the company's liquidity position.

It's important for stakeholders to monitor the current ratio closely to ensure that Medpace Holdings Inc can efficiently manage its working capital and meet its short-term financial commitments. Further analysis of the underlying financials and operational performance may provide more insights into the company's liquidity position.