Medpace Holdings Inc (MEDP)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	1,656,830	1,352,500	1,659,940	1,390,680	1,143,070
Total stockholders’ equity	US$ in thousands	558,950	386,387	952,928	805,779	726,283
Financial leverage ratio		2.96	3.50	1.74	1.73	1.57

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,656,830K ÷ $558,950K
= 2.96

The financial leverage ratio of Medpace Holdings Inc has fluctuated over the past five years. The ratio was at its lowest in 2019 at 1.57, indicating a lower level of financial leverage. However, there was a substantial increase in leverage in 2020 and 2021, with the ratio rising to 1.73 and 1.74, respectively.

The trend reversed in 2022 and 2023, with the financial leverage ratio increasing significantly to 3.50 and 2.96, respectively. This suggests that the company has been relying more on debt to finance its operations and investments in more recent years.

Overall, the varying financial leverage ratios indicate changes in the capital structure of Medpace Holdings Inc, highlighting shifts in the level of debt used to support the company's activities and potentially influencing its financial risk profile. Investors and analysts may need to further investigate the reasons behind these fluctuations to assess the implications for the company's financial health and stability.