Medpace Holdings Inc (MEDP)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	336,825	278,697	198,615	167,042	127,263
Total assets	US$ in thousands	1,656,830	1,352,500	1,659,940	1,390,680	1,143,070
Operating ROA		20.33%	20.61%	11.97%	12.01%	11.13%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $336,825K ÷ $1,656,830K
= 20.33%

The operating return on assets (operating ROA) for Medpace Holdings Inc has shown a generally positive trend from 2019 to 2023. The metric increased from 11.13% in 2019 to 20.33% in 2023, indicating an improvement in the company's ability to generate operating profit from its assets over the years.

In 2020, there was a slight dip in the operating ROA to 12.01% from the previous year, but the metric recovered and reached its peak at 20.61% in 2022. This variability could be reflective of changing market conditions, operational efficiencies, or strategic initiatives implemented by the company during those respective years.

Overall, the consistent upward trend in the operating ROA suggests that Medpace Holdings Inc has been effectively utilizing its assets to generate operating income, demonstrating operational strength and efficiency. Investors and stakeholders would likely view this performance positively as it indicates the company's ability to generate profits from its asset base.