Medpace Holdings Inc (MEDP)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.06% | 23.50% | 18.98% | 19.34% | 15.70% |
| Operating profit margin | 17.88% | 18.34% | 17.34% | 18.03% | 14.79% |
| Pretax margin | 17.82% | 18.62% | 17.63% | 18.19% | 14.51% |
| Net profit margin | 15.01% | 16.15% | 15.88% | 15.69% | 11.67% |
Medpace Holdings Inc's profitability ratios have shown fluctuations over the past five years. The gross profit margin has ranged from 27.81% to 30.10%, indicating the company's ability to generate profits after accounting for the cost of goods sold. The operating profit margin has fluctuated between 14.78% and 19.09%, showing the company's ability to generate earnings from its core operations.
The pretax margin, which represents the company's profitability before taxes, has varied between 14.50% and 19.37%. This ratio indicates the company's efficiency in managing operating expenses and generating profits before tax expenses. The net profit margin, which measures the company's profitability after all expenses have been deducted, has ranged from 11.63% to 16.80%.
Overall, Medpace Holdings Inc's profitability ratios show some variability, which may be influenced by factors such as changes in revenue, operating expenses, and cost of goods sold. It is essential for the company to closely monitor these ratios and implement strategies to maintain or improve profitability in the long run.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.33% | 20.61% | 11.97% | 12.01% | 11.13% |
| Return on assets (ROA) | 17.07% | 18.14% | 10.96% | 10.45% | 8.79% |
| Return on total capital | 60.26% | 72.13% | 20.84% | 20.73% | 17.52% |
| Return on equity (ROE) | 50.60% | 63.50% | 19.08% | 18.04% | 13.83% |
The profitability ratios of Medpace Holdings Inc have shown consistent improvement over the past five years.
1. Operating return on assets (Operating ROA) indicates the company's ability to generate operating income relative to its total assets. Medpace Holdings Inc's Operating ROA has remained relatively stable, ranging between 11.97% to 20.61% over the period analyzed.
2. Return on assets (ROA) measures how effectively the company is utilizing its assets to generate profits. Medpace Holdings Inc's ROA has shown a positive trend, increasing from 8.76% in 2019 to 18.13% in 2022, before slightly declining to 17.06% in 2023.
3. Return on total capital reflects the overall profitability of the company from all sources of capital. Medpace Holdings Inc has demonstrated substantial improvement in this ratio, with values increasing from 17.52% in 2019 to 63.86% in 2022, before reaching 60.26% in 2023.
4. Return on equity (ROE) measures the return generated on shareholders' equity. Medpace Holdings Inc's ROE has exhibited a consistent uptrend, from 13.79% in 2019 to 63.46% in 2022, and then slightly decreasing to 50.56% in 2023.
Overall, Medpace Holdings Inc has delivered strong profitability performance, as evidenced by the upward trajectory of its key profitability ratios over the analysis period. The company’s ability to generate returns for its stakeholders and efficiently use its assets and capital bodes well for its financial health and growth prospects.