Medpace Holdings Inc (MEDP)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 2.96 | 3.50 | 1.74 | 1.73 | 1.57 |
Solvency ratios provide insights into a company's ability to meet its long-term financial obligations. Looking at the data for Medpace Holdings Inc, the debt-to-assets ratio has been consistently at 0.00 over the past five years. This indicates that the company has no debt in relation to its assets, which is a positive sign for creditors and investors as it suggests a lower risk of default.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also been relatively stable at 0.00 and low levels, indicating that the company has minimal debt in relation to its capital and equity. This implies that Medpace Holdings Inc relies more on equity financing rather than debt to fund its operations, which can be seen as a conservative financial strategy.
Lastly, the financial leverage ratio has shown some fluctuations over the years, but overall it has been within a reasonable range. The ratio indicates the extent to which the company is using debt to finance its operations. With a financial leverage ratio of around 1.57 to 3.50, Medpace Holdings Inc appears to have a moderate level of financial leverage, which suggests that it is not overly reliant on debt for its financing needs.
In conclusion, based on the solvency ratios analyzed, Medpace Holdings Inc appears to have a strong financial position with minimal debt levels and a prudent approach to managing its long-term liabilities.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 690.22 | 95.94 | 1,891.57 | 544.11 | 81.16 |
The interest coverage ratio of Medpace Holdings Inc has exhibited significant fluctuations over the past five years. In 2021, the company had a robust interest coverage ratio of 1,891.57, indicating its ability to cover interest expenses nearly 1,891 times over with its earnings. This exceptionally high ratio suggests that the company generated ample operating income to comfortably meet its interest obligations during that period.
However, in 2022, the interest coverage ratio decreased sharply to 95.94, signifying a notable decline in the company's ability to cover its interest expenses with its operating income. This drop may raise concerns about the company's financial stability and its capacity to service its debt obligations adequately.
In 2023, the interest coverage ratio spiked to 690.22, representing a substantial improvement from the preceding year. This increase indicates a significant enhancement in the company's ability to pay interest charges from its operating earnings, reflecting a healthier financial position compared to the previous year.
Notably, there is missing data for the interest coverage ratio for the year ending December 31, 2020, which limits the continuity of the trend analysis. Nonetheless, the significant fluctuations in the interest coverage ratio over the observed period highlight the importance of evaluating the company's financial health and debt servicing capabilities comprehensively.