Medpace Holdings Inc (MEDP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.49% | 19.06% | 23.50% | 18.98% | 19.34% |
| Operating profit margin | 21.19% | 17.88% | 18.34% | 17.34% | 18.03% |
| Pretax margin | 22.57% | 17.82% | 18.62% | 17.63% | 18.19% |
| Net profit margin | 19.18% | 15.01% | 16.15% | 15.88% | 15.69% |
Based on the data provided, let's analyze the profitability ratios of Medpace Holdings Inc over the years:
1. Gross Profit Margin: The gross profit margin represents the percentage of revenue that exceeds the cost of goods sold. Medpace's gross profit margin fluctuated over the years, ranging from 18.98% in 2021 to a peak of 23.50% in 2022. This indicates the efficiency of the company in managing its production costs.
2. Operating Profit Margin: The operating profit margin reflects the percentage of revenue that remains after deducting operating expenses. Medpace's operating profit margin experienced slight fluctuations, with a range from 17.34% in 2021 to 21.19% in 2024. This suggests the company's ability to control its operational costs effectively.
3. Pretax Margin: The pretax margin shows the percentage of revenue that translates into pre-tax earnings. Medpace's pretax margin varied from 17.63% in 2021 to 22.57% in 2024, indicating the company's ability to generate profits before accounting for taxes.
4. Net Profit Margin: The net profit margin represents the percentage of revenue that translates into net income after all expenses have been deducted. Medpace's net profit margin fluctuated between 15.01% in 2023 to 19.18% in 2024, reflecting the company's bottom-line profitability and efficiency in managing overall expenses.
Overall, Medpace Holdings Inc has shown relative stability in its profitability margins over the years, with some fluctuations in different periods. The company has demonstrated efficiency in managing costs and generating profits, as indicated by the improvement in margins in recent years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 21.27% | 20.33% | 20.61% | 11.97% | 12.01% |
| Return on assets (ROA) | 19.25% | 17.07% | 18.14% | 10.96% | 10.45% |
| Return on total capital | 54.13% | 60.26% | 72.13% | 20.84% | 20.73% |
| Return on equity (ROE) | 48.98% | 50.60% | 63.50% | 19.08% | 18.04% |
Based on the provided data, we can analyze Medpace Holdings Inc profitability ratios as follows:
1. Operating Return on Assets (Operating ROA):
- Medpace's Operating ROA remained relatively stable over the years, ranging from 11.97% in 2021 to 21.27% in 2024. This ratio indicates the company's ability to generate profits from its operations relative to its total assets.
2. Return on Assets (ROA):
- The ROA also showed a positive trend, increasing from 10.45% in 2020 to 19.25% in 2024. This ratio reveals how efficiently the company is utilizing its assets to generate profits.
3. Return on Total Capital:
- The Return on Total Capital ratio saw a significant increase from 20.73% in 2020 to 54.13% in 2024. This suggests that Medpace has been effective in generating returns from both equity and debt capital invested in the business.
4. Return on Equity (ROE):
- The ROE demonstrated a similar upward trajectory from 18.04% in 2020 to 48.98% in 2024. This ratio reflects the company's ability to generate profits for its shareholders from the equity they have invested.
Overall, Medpace Holdings Inc has shown consistent improvement in its profitability ratios over the years, indicating efficient utilization of assets and capital to generate returns for both the company and its shareholders.