Medpace Holdings Inc (MEDP)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	558,950	386,387	952,928	805,779	726,283
ROE		50.60%	63.50%	19.08%	18.04%	13.83%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $282,810K ÷ $558,950K
= 50.60%

Over the past five years, Medpace Holdings Inc has shown varying levels of return on equity (ROE), indicating its profitability and efficiency in generating returns for its shareholders.

The ROE for Medpace Holdings Inc has fluctuated over the period from 2019 to 2023. In 2019, the company had an ROE of 13.79%, which then increased to 17.99% in 2020, showing an improvement in profitability and efficiency. Subsequently, the ROE further increased to 19.04% in 2021, before experiencing a significant jump to 63.46% in 2022. This surge in ROE in 2022 suggests a substantial improvement in the company's ability to generate profits relative to its shareholders' equity.

However, in 2023, the ROE decreased to 50.56%, still significantly higher than the levels seen in 2019 and 2020. This reduction in ROE from the previous year may indicate a slight dip in profitability or efficiency, but the company still shows a strong performance relative to its equity base.

Overall, Medpace Holdings Inc's ROE has shown positive trends over the five-year period, demonstrating the company's ability to effectively utilize its equity to generate profits for its shareholders. The fluctuation in ROE levels highlights the company's ongoing efforts to improve profitability and efficiency in its operations.