Medpace Holdings Inc (MEDP)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	336,825	278,697	198,615	167,042	127,263
Long-term debt	US$ in thousands	—	—	—	—	0
Total stockholders’ equity	US$ in thousands	558,950	386,387	952,928	805,779	726,283
Return on total capital		60.26%	72.13%	20.84%	20.73%	17.52%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $336,825K ÷ ($—K + $558,950K)
= 60.26%

The return on total capital for Medpace Holdings Inc has shown a fluctuating trend over the past five years. In 2023, the return on total capital was 60.26%, a decrease from the previous year's 63.86%. Despite the decrease, the company still maintained a strong return on total capital above 20%, which indicates efficient use of capital to generate profits.

Comparing the current return on total capital with that of 2019, there has been a noticeable improvement, as the figure has increased from 17.52% to 60.26% in 2023. This suggests that Medpace Holdings Inc has been able to enhance its capital efficiency and profitability over the past five years.

Overall, the trend in return on total capital for Medpace Holdings Inc indicates the company's ability to generate solid returns relative to its capital employed, showcasing effective capital management and operational efficiency.