Medpace Holdings Inc (MEDP)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 404,386 | 282,810 | 245,368 | 181,848 | 145,384 |
| Total stockholders’ equity | US$ in thousands | 825,545 | 558,950 | 386,387 | 952,928 | 805,779 |
| ROE | 48.98% | 50.60% | 63.50% | 19.08% | 18.04% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $404,386K ÷ $825,545K
= 48.98%
The return on equity (ROE) of Medpace Holdings Inc has shown a positive trend over the past five years, starting at 18.04% as of December 31, 2020, and gradually increasing to 19.08% by December 31, 2021. The significant improvement in ROE continued in the following years, reaching 63.50% on December 31, 2022, 50.60% on December 31, 2023, and 48.98% on December 31, 2024.
This consistent growth in ROE indicates that Medpace Holdings Inc has been effectively utilizing its equity to generate profits for its shareholders. A high ROE signifies that the company is efficiently leveraging its capital to generate earnings, which is a positive indicator for investors. The company's ability to generate higher returns on shareholder equity over the years reflects well on its financial management and operational efficiency.
It is important for investors and stakeholders to continue monitoring the ROE of Medpace Holdings Inc to assess its profitability and evaluate the company's performance in generating returns on the capital invested by shareholders.
Peer comparison
Dec 31, 2024