Medpace Holdings Inc (MEDP)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	2,100,870	1,656,830	1,352,500	1,659,940	1,390,680
Total stockholders’ equity	US$ in thousands	825,545	558,950	386,387	952,928	805,779
Financial leverage ratio		2.54	2.96	3.50	1.74	1.73

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,100,870K ÷ $825,545K
= 2.54

The financial leverage ratio, also known as the debt-to-equity ratio, measures the extent to which a company relies on debt to finance its operations and growth. In the case of Medpace Holdings Inc, the financial leverage ratio has shown some fluctuations over the years:

- As of December 31, 2020, the financial leverage ratio was 1.73, indicating that the company had $1.73 in debt for every $1 of equity.
- By December 31, 2021, the ratio had slightly increased to 1.74, suggesting a marginal shift towards more reliance on debt.
- A significant increase was observed by December 31, 2022, with the ratio jumping to 3.50, signaling a substantial increase in debt relative to equity.
- The ratio decreased to 2.96 by December 31, 2023, reflecting a reduction in the level of leverage compared to the previous year.
- Finally, as of December 31, 2024, the financial leverage ratio further improved to 2.54, indicating a continued decrease in the company's reliance on debt.

Overall, the trend in Medpace Holdings Inc's financial leverage ratio suggests some variability in the company's capital structure over the years, with periods of increased leverage followed by efforts to reduce debt levels. It is important for investors and stakeholders to monitor this ratio to assess the company's risk profile and financial health.