Medpace Holdings Inc (MEDP)

Quick ratio

		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	US$ in thousands	245,449	95,207	39,138	46,922	28,265	31,007	42,551	82,843	461,304	398,387	339,009	332,877	277,766	219,227	160,903	133,999	131,920	79,290	20,098	30,127
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	298,400	292,773	275,058	257,746	253,404	249,086	225,695	224,759	186,432	186,378	161,489	159,997	160,962	134,087	127,286	136,374	155,662	140,189	149,860	129,624
Total current liabilities	US$ in thousands	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	343,002	314,392	296,073	264,541
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($245,449K + $—K + $298,400K) ÷ $925,131K
= 0.59

The quick ratio of Medpace Holdings Inc fluctuated over the eight quarters from Q1 2022 to Q4 2023, ranging from a low of 0.37 to a high of 0.64. This ratio measures the company's ability to meet its short-term obligations using its most liquid assets, excluding inventory. Generally, a quick ratio above 1 indicates that the company is in a healthy financial position, as it has enough liquid assets to cover its short-term liabilities.

Medpace Holdings Inc's quick ratio hovered below 1 for most quarters, indicating a potential risk in meeting its short-term obligations solely with its liquid assets. The ratio showed some improvement in Q4 2023 compared to previous quarters, reaching 0.64, suggesting an enhanced ability to cover short-term liabilities with its readily available assets. However, the company should continue to monitor and improve its liquidity position to ensure financial stability.