Medpace Holdings Inc (MEDP)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.08

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $558,950K)
= 0.00

The debt-to-capital ratio of Medpace Holdings Inc has fluctuated over the past eight quarters. In Q1 2022, the ratio was at its highest with 47%, indicating a significant reliance on debt to finance its operations relative to its total capital. Subsequently, the ratio decreased to 29% in Q3 2022 before dropping to 0% in Q4 2022. This significant decrease could be due to debt reduction or an increase in equity financing.

However, the ratio increased again in Q1 2023 to 25%, suggesting a moderate level of debt relative to total capital. This was followed by a further decline to 12% in Q2 2023 and eventually reached 0% in Q3 and Q4 2023. An abrupt decrease to 0% in the most recent quarters may indicate a strategic shift towards reducing debt or increasing equity capital, potentially improving the company's financial stability and reducing financial risk.

Overall, Medpace Holdings Inc has shown variability in its debt-to-capital ratio over the past eight quarters, with a recent trend towards lower debt levels relative to total capital, which may positively impact the company's financial health and risk profile.