Medpace Holdings Inc (MEDP)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.54 | 2.96 | 3.50 | 1.74 | 1.73 |
Based on the provided data, Medpace Holdings Inc has consistently shown strong solvency ratios over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been reported as 0.00 from 2020 to 2024, indicating that the company has no significant debt in relation to its assets, capital, or equity during this period.
However, the Financial leverage ratio has shown some variability over the years. It increased from 1.73 in 2020 to 1.74 in 2021, but then significantly jumped to 3.50 in 2022. It moderated slightly to 2.96 in 2023 and further decreased to 2.54 in 2024. This indicates that while the company does not have much debt relative to assets, capital, or equity, there has been some fluctuation in how leveraged the company is in terms of its financial structure.
Overall, the data suggests that Medpace Holdings Inc has maintained a strong solvency position with negligible debt compared to its assets, capital, and equity, although some fluctuations in financial leverage have been observed.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 17.88 | 690.22 | 95.94 | 1,891.57 | 544.11 |
Interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. For Medpace Holdings Inc, the interest coverage ratio has shown significant fluctuations over the years.
In 2020, the interest coverage ratio was 544.11, indicating a strong ability to cover interest expenses with operating income. This ratio increased substantially to 1,891.57 in 2021, reflecting a significant improvement in the company's ability to service its debt.
However, there was a notable decline in the interest coverage ratio to 95.94 in 2022, suggesting potential concerns about the company's ability to cover interest obligations comfortably. The ratio rebounded in 2023 to 690.22, indicating an improvement in the company's financial position.
In 2024, the interest coverage ratio dropped significantly to 17.88, which may raise red flags regarding the company's ability to meet its interest payments based on its operating income.
Overall, while the interest coverage ratios for Medpace Holdings Inc have shown significant fluctuations, indicating both strengths and weaknesses in its financial position, investors and creditors may want to closely monitor future trends to assess the company's ability to manage its debt levels effectively.