Medpace Holdings Inc (MEDP)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	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	127,263	121,811	118,738	106,824
Total assets	US$ in thousands	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	1,143,070	1,072,330	1,016,860	1,006,520
Operating ROA		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%	11.13%	11.36%	11.68%	10.61%

December 31, 2023 calculation

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

Analyzing the operating return on assets (ROA) for Medpace Holdings Inc over the past eight quarters reveals a positive trend in the company's operational efficiency and asset management. The operating ROA has been consistently increasing from 16.01% in Q1 2022 to 22.66% in Q2 2023, indicating improved profitability per dollar of assets utilized.

This upward trajectory suggests that Medpace Holdings Inc has been able to generate more operating income relative to its asset base over time, reflecting effective management of resources and operational capabilities. The company's ability to maintain and enhance its operating ROA demonstrates a strong operational performance and sustainable growth potential in the industry.