Medpace Holdings Inc (MEDP)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	2,100,870	2,084,060	1,920,050	1,795,790	1,656,830	1,486,720	1,406,940	1,395,720	1,352,500	1,328,420	1,315,450	1,344,350	1,659,940	1,577,140	1,469,710	1,451,360	1,390,680	1,296,140	1,222,130	1,137,630
Operating ROA		21.27%	19.62%	19.87%	19.75%	20.33%	21.92%	22.66%	21.54%	20.61%	19.36%	17.71%	16.01%	11.97%	12.60%	13.03%	12.34%	12.01%	11.43%	10.78%	12.03%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $446,870K ÷ $2,100,870K
= 21.27%

Operating ROA is a key financial ratio that measures a company's ability to generate operating income from its assets. Medpace Holdings Inc's operating ROA has shown an upward trend over the past few years. It was around 12% in early 2020 and gradually increased to reach over 20% by the end of 2022.

This improvement indicates that the company is becoming more efficient in using its assets to generate operating profits. A higher operating ROA signifies that the company is managing its assets effectively and generating healthy returns from its core operations.

However, there was a slight decline in operating ROA towards the end of 2024, dropping to around 21%, which could be a point of concern. It is important for investors and stakeholders to monitor this trend closely to understand the factors influencing the company's operating profitability and asset utilization in the future.