Medpace Holdings Inc (MEDP)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 669,436 | 245,449 | 28,265 | 461,304 | 277,766 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 296,443 | 298,400 | 253,404 | 186,432 | 160,962 |
| Total current liabilities | US$ in thousands | 1,104,550 | 925,131 | 803,470 | 557,217 | 440,110 |
| Quick ratio | 0.87 | 0.59 | 0.35 | 1.16 | 1.00 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($669,436K
+ $—K
+ $296,443K)
÷ $1,104,550K
= 0.87
The quick ratio of Medpace Holdings Inc has exhibited fluctuating trends over the past five years. In December 31, 2020, the quick ratio was at an acceptable level of 1.00, indicating that the company had sufficient liquid assets to cover its current liabilities. The ratio improved to 1.16 by December 31, 2021, suggesting an even stronger liquidity position.
However, there was a significant decline in the quick ratio to 0.35 by December 31, 2022, signaling potential liquidity challenges for the company. It rebounded slightly to 0.59 by December 31, 2023, but still remained below the desirable level of 1.
By the end of December 31, 2024, the quick ratio further improved to 0.87, showing a gradual recovery in the company's liquidity position. Despite the improvement, the ratio still indicates that Medpace Holdings Inc may need to manage its liquid assets more effectively to meet its short-term obligations comfortably.
Peer comparison
Dec 31, 2024