Medpace Holdings Inc (MEDP)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 446,870 | 408,812 | 381,447 | 354,690 | 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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 825,545 | 881,439 | 763,599 | 671,542 | 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 |
| Return on total capital | 54.13% | 46.38% | 49.95% | 52.82% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $446,870K ÷ ($—K + $825,545K)
= 54.13%
From March 31, 2020, to December 31, 2024, Medpace Holdings Inc's return on total capital exhibited fluctuations. The ratio started at 19.07% in March 2020 and steadily increased to reach a peak of 86.59% in March 2023. This indicated that the company was generating significant returns relative to the total capital employed.
However, from June 2023 onwards, there was a noticeable decline in the return on total capital, dropping to 46.38% by September 30, 2024. This downward trend continued through to December 31, 2024, where the ratio increased slightly to 54.13%. The decreasing trend may suggest that the company's profitability relative to its total capital has been diminishing over these periods.
It is essential for Medpace Holdings Inc to closely monitor this ratio to understand the underlying factors driving the fluctuations and implement strategies to improve its return on total capital in the future.
Peer comparison
Dec 31, 2024