Medpace Holdings Inc (MEDP)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	282,810	245,368	181,848	145,384	100,443
Total assets	US$ in thousands	1,656,830	1,352,500	1,659,940	1,390,680	1,143,070
ROA		17.07%	18.14%	10.96%	10.45%	8.79%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $282,810K ÷ $1,656,830K
= 17.07%

Medpace Holdings Inc's return on assets (ROA) has shown a generally positive trend over the past five years. The ROA was 17.06% in 2023, slightly lower than the previous year's figure of 18.13%. Despite this dip, the company still maintained a strong performance in converting its assets into profits. Compared to 2021 and 2020, where the ROA was 10.93% and 10.42% respectively, there has been a noticeable improvement in recent years.

Furthermore, the ROA in 2019 was 8.76%, indicating a consistent upward trajectory in the company's asset utilization efficiency. This suggests that Medpace Holdings Inc has been effectively generating earnings relative to its total assets, demonstrating sound financial management and operational effectiveness.

Overall, the trend in Medpace Holdings Inc's ROA reflects a positive operational performance and efficient asset management, which bodes well for the company's financial health and sustainability.