Medpace Holdings Inc (MEDP)

Liquidity ratios

	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
Current ratio	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	0.92	0.80	0.66	0.69
Quick ratio	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	0.84	0.70	0.57	0.60
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

The liquidity ratios of Medpace Holdings Inc show a consistent trend over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has improved steadily from 0.37 in Q2 2022 to 0.64 in Q4 2023. However, the current ratio is still relatively low, indicating that the company may have difficulty meeting its short-term liabilities.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, shows the same trend as the current ratio. This suggests that Medpace Holdings Inc may have limited liquid assets to cover its short-term obligations.

The cash ratio, which indicates the proportion of current liabilities that can be covered by cash and cash equivalents, has also shown improvement from 0.11 in Q3 2022 to 0.32 in Q4 2023. While this is a positive sign, the cash ratio remains relatively low, indicating that the company may need to manage its cash flow more effectively to meet its short-term obligations.

Overall, the liquidity ratios of Medpace Holdings Inc highlight the importance of monitoring the company's ability to meet its short-term financial commitments. Improvements in these ratios over time suggest progress in managing liquidity, but further enhancements may be needed to ensure financial stability.

Additional liquidity measure

		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 conversion cycle	days	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	54.33	50.81	56.44	55.43

The cash conversion cycle for Medpace Holdings Inc is a key metric that reflects the company's effectiveness in managing its working capital. It represents the time it takes for the company to convert its investments in raw materials and production into cash inflows from sales.

Looking at the data provided, we can see that the cash conversion cycle for Medpace Holdings Inc has fluctuated over the eight quarters presented. The cycle has ranged from a low of 47.86 days in Q1 2023 to a high of 56.88 days in Q1 2022.

A lower cash conversion cycle indicates that the company is efficiently managing its working capital, as it is able to quickly convert its investments into cash. On the other hand, a higher cycle suggests that the company may be experiencing delays in converting its investments into cash inflows.

Overall, it is important for Medpace Holdings Inc to monitor and strive to reduce its cash conversion cycle in order to improve its liquidity position and overall financial health. A shorter cycle will indicate that the company is effectively managing its inventory, accounts receivable, and accounts payable, leading to improved cash flow and potentially higher profitability.