Medpace Holdings Inc (MEDP)

Debt-to-capital ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	825,545	558,950	386,387	952,928	805,779
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $825,545K)
= 0.00

Based on the data provided, Medpace Holdings Inc has consistently maintained a debt-to-capital ratio of 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not used any debt financing as a part of its capital structure during this period.

A debt-to-capital ratio of 0.00 suggests that the company relies solely on equity financing to support its operations and growth initiatives. This may imply that the company has a strong financial position, as it does not have any debt obligations that could strain its cash flow or financial stability.

However, it is important to note that while a low or zero debt-to-capital ratio can be indicative of a strong financial position, it may also limit the company's ability to take advantage of leverage for potential growth opportunities or tax benefits associated with debt financing. Additionally, the absence of debt may indicate conservative financial management or a lack of access to favorable debt financing options.

Overall, the consistent 0.00 debt-to-capital ratio of Medpace Holdings Inc suggests a financially conservative approach to capital structure management, but it is essential for investors and stakeholders to consider the broader context and implications of this ratio in relation to the company's overall financial strategy and performance.