Medpace Holdings Inc (MEDP)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	282,810	273,182	268,659	256,951	245,368	226,732	209,279	199,853	181,848	182,680	175,566	159,736	145,384	124,331	106,848	110,199	100,443	93,391	88,719	77,832
Total stockholders’ equity	US$ in thousands	558,950	470,912	391,060	347,262	386,387	349,885	283,252	605,016	952,928	898,085	851,882	858,927	805,779	791,629	738,069	717,799	726,283	692,007	658,055	621,897
ROE		50.60%	58.01%	68.70%	73.99%	63.50%	64.80%	73.88%	33.03%	19.08%	20.34%	20.61%	18.60%	18.04%	15.71%	14.48%	15.35%	13.83%	13.50%	13.48%	12.52%

December 31, 2023 calculation

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

To analyze Medpace Holdings Inc's return on equity (ROE) based on the provided data, we observe fluctuations over the past quarters. The ROE has displayed volatility, ranging from a low of 32.97% in Q1 2022 to a high of 73.94% in Q1 2023. The overall trend indicates a general increase in ROE from Q1 2022 to Q1 2023, suggesting improved efficiency in generating profits from shareholder equity.

The company's ROE peaked in Q1 2023 at 73.94%, reflecting strong profitability relative to shareholder equity. However, this was preceded by a decline in Q4 2022 from the prior quarter's high of 73.79%. Notably, Q3 and Q4 of 2022 showed relatively stable ROE levels in the mid-60% range, indicating consistent performance during that period.

The recent decrease in ROE from Q1 2023 to Q4 2023, falling to 50.56%, may raise concerns about the company's ability to maintain its profitability levels. Further analysis is required to understand the drivers behind this decline and whether it is a temporary fluctuation or a concerning trend.

In conclusion, while Medpace Holdings Inc has shown fluctuations in its ROE, the general trend has been positive with periods of strong profitability. Monitoring future ROE trends will be essential to assess the company's ability to effectively utilize shareholder equity in generating returns.