Medpace Holdings Inc (MEDP)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 446,870 | 336,825 | 278,697 | 198,615 | 167,042 |
| Total assets | US$ in thousands | 2,100,870 | 1,656,830 | 1,352,500 | 1,659,940 | 1,390,680 |
| Operating ROA | 21.27% | 20.33% | 20.61% | 11.97% | 12.01% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $446,870K ÷ $2,100,870K
= 21.27%
Based on the data provided for Medpace Holdings Inc, the operating return on assets (operating ROA) has shown a generally positive trend over the years. In December 31, 2020, the operating ROA was 12.01%, which slightly decreased to 11.97% by December 31, 2021. However, there was a significant improvement in performance in the following years, with operating ROA reaching 20.61% by December 31, 2022, increasing further to 20.33% by December 31, 2023, and peaking at 21.27% by December 31, 2024.
The increasing trend in operating ROA indicates that Medpace Holdings Inc has been able to generate higher operating profits relative to its assets over time. This improvement suggests that the company's operational efficiency and asset utilization have been enhanced, resulting in better profitability per dollar of assets employed. Overall, the upward trajectory of the operating ROA reflects positively on the company's financial performance and efficiency in utilizing its assets to generate earnings.
Peer comparison
Dec 31, 2024