Medpace Holdings Inc (MEDP)

Pretax margin

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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands 475,922 432,747 397,172 362,434 335,682 318,620 317,311 303,566 282,860 265,136 237,980 218,667 201,852 200,633 192,887 180,563 168,532 150,047 132,522 136,652
Revenue (ttm) US$ in thousands 2,108,554 2,068,966 2,028,148 1,960,912 1,899,742 1,816,339 1,717,384 1,607,723 1,488,796 1,387,029 1,289,052 1,216,138 1,145,156 1,094,017 1,028,823 955,525 926,439 896,133 881,998 891,107
Pretax margin 22.57% 20.92% 19.58% 18.48% 17.67% 17.54% 18.48% 18.88% 19.00% 19.12% 18.46% 17.98% 17.63% 18.34% 18.75% 18.90% 18.19% 16.74% 15.03% 15.34%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $475,922K ÷ $2,108,554K
= 22.57%

The pretax margin of Medpace Holdings Inc has shown a generally positive trend over the periods analyzed. Starting at 15.34% in March 2020, the pretax margin has consistently improved and demonstrated stability, reaching 22.57% by December 2024. This indicates that Medpace has been effectively managing its operating expenses and generating higher profitability before accounting for taxes. The increasing trend suggests that the company has been able to enhance its operational efficiency and control costs effectively, leading to improved profitability levels over time. However, the slight dip in pretax margin observed in the last quarter of 2024 compared to the previous quarter indicates a potential need for further analysis and monitoring of cost structures to sustain and potentially enhance profitability levels in the future.