Medpace Holdings Inc (MEDP)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 335,682 | 282,860 | 201,852 | 168,532 | 124,832 |
| Revenue | US$ in thousands | 1,883,940 | 1,519,300 | 1,145,160 | 926,439 | 860,388 |
| Pretax margin | 17.82% | 18.62% | 17.63% | 18.19% | 14.51% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $335,682K ÷ $1,883,940K
= 17.82%
The pretax margin of Medpace Holdings Inc has fluctuated over the past five years, ranging from 14.50% in 2019 to 19.37% in 2022. In 2023, the pretax margin decreased to 17.80%. This metric indicates the company's efficiency in generating profits before accounting for taxes, with a higher percentage representing stronger profitability. The consistent levels above 15% demonstrate Medpace's ability to effectively manage its expenses and generate earnings relative to its revenue in recent years. However, the slight decrease in 2023 reflects potential shifts in the company's cost structure or revenue mix that may warrant further investigation to sustain profitability in the future.
Peer comparison
Dec 31, 2023