Medpace Holdings Inc (MEDP)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	336,825	325,936	318,855	300,698	278,697	257,121	233,007	215,219	198,615	198,748	191,457	179,137	167,042	148,172	131,741	136,872	127,263	121,811	118,738	106,824
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	0	0	0	55,781
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
Return on total capital		60.26%	69.21%	81.54%	86.59%	72.13%	73.49%	82.26%	35.57%	20.84%	22.13%	22.47%	20.86%	20.73%	18.72%	17.85%	19.07%	17.52%	17.60%	18.04%	15.76%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (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 consistent upward trend over the past eight quarters, increasing from 35.57% in Q1 2022 to a peak of 71.48% in Q2 2023. This indicates that the company has been effectively utilizing its total capital to generate profits and create value for its stakeholders. The successive improvements in return on total capital reflect a strong operational performance and efficient capital allocation within the organization. Overall, the upward trajectory of this ratio suggests that Medpace Holdings Inc has been successful in maximizing returns on its total capital over the period analyzed.