Medpace Holdings Inc (MEDP)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	446,870	408,812	381,447	354,690	336,825	325,936	318,855	300,698	278,697	257,121	233,007	215,219	198,615	198,748	191,457	179,137	167,042	148,172	131,741	136,872
Revenue (ttm)	US$ in thousands	2,108,554	2,068,966	2,028,148	1,960,912	1,899,742	1,816,339	1,717,384	1,607,723	1,488,796	1,387,029	1,289,052	1,216,138	1,145,156	1,094,017	1,028,823	955,525	926,439	896,133	881,998	891,107
Operating profit margin		21.19%	19.76%	18.81%	18.09%	17.73%	17.94%	18.57%	18.70%	18.72%	18.54%	18.08%	17.70%	17.34%	18.17%	18.61%	18.75%	18.03%	16.53%	14.94%	15.36%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $446,870K ÷ $2,108,554K
= 21.19%

The operating profit margin of Medpace Holdings Inc has shown a generally positive trend over the analyzed period, starting at 15.36% in March 2020 and increasing to 21.19% by December 2024. This indicates that the company has been effectively managing its operating expenses relative to its revenue generation.

There were fluctuations in the operating profit margin, with both increases and decreases occurring during the period. For instance, there was a noticeable increase from March 2020 to September 2020, followed by a slight decrease in December 2020. However, from March 2021 onwards, the trend generally showed an upward movement, reaching its peak in December 2024.

The company's ability to maintain a relatively high operating profit margin suggests operational efficiency and effective cost management strategies. It indicates that Medpace Holdings Inc has been successful in generating profits from its core business activities while keeping costs in check.

Overall, the increasing operating profit margin trend reflects positively on the company's profitability and operational performance throughout the analyzed period.