Medpace Holdings Inc (MEDP)

Liquidity ratios

	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
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
Quick ratio	0.87	0.93	0.82	0.72	0.59	0.46	0.37	0.35	0.35	0.34	0.31	0.53	1.16	1.13	1.06	1.10	1.00	0.99	0.85	0.80
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

The liquidity ratios of Medpace Holdings Inc provide insight into the company's ability to meet its short-term obligations and manage its cash flow.

1. Current ratio: This ratio indicates the firm's ability to pay off its current liabilities with its current assets. Medpace's current ratio fluctuated over the analyzed periods, decreasing from 1.19 in March 2021 to 0.44 in June 2023, before gradually increasing to 0.93 by December 2024. The current ratio peaked at 1.24 in September 2021, indicating a more favorable position to cover short-term obligations.

2. Quick ratio: Also known as the acid-test ratio, it measures the company's ability to pay off its current liabilities without relying on the sale of inventory. Medpace's quick ratio followed a similar trend to the current ratio, declining from 1.16 in December 2021 to 0.59 in December 2023, before recovering to 0.87 by December 2024. A quick ratio above 1 is generally considered healthy, indicating the ability to cover short-term obligations without relying on inventory liquidation.

3. Cash ratio: This ratio is the most conservative measure of liquidity, focusing solely on the company's cash and cash equivalents to cover current liabilities. Medpace's cash ratio increased steadily from 0.48 in June 2020 to 0.61 in September 2020, before experiencing fluctuations and ending at 0.61 by December 2024. A rising cash ratio suggests an improvement in the company's ability to meet short-term obligations using cash reserves.

Overall, the liquidity ratios of Medpace Holdings Inc show variability over time, with periods of improvement and decline. Monitoring these ratios can help investors and stakeholders assess the company's short-term financial health and liquidity position.

Additional liquidity measure

		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 conversion cycle	days	44.05	49.10	48.03	46.34	49.70	51.44	49.25	47.61	51.74	56.17	53.76	58.00	49.32	51.78	46.94	50.90	50.45	46.49	45.10	47.26

The cash conversion cycle of Medpace Holdings Inc has fluctuated over the past few years, indicating variations in the company's efficiency in managing its working capital. The trend shows that the company took an average of 47 days to convert its investments in inventory and other resources into cash as of December 31, 2024, which is a slight improvement compared to previous quarters.

However, the cycle increased to 58 days as of March 31, 2022, suggesting potential challenges in managing cash flows efficiently during that period. It's essential for the company to monitor and optimize its inventory turnover, accounts receivable collection, and accounts payable payment periods to shorten the cash conversion cycle and improve liquidity. Overall, a lower cash conversion cycle indicates efficient operations and better utilization of resources for Medpace Holdings Inc.