Medpace Holdings Inc (MEDP)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 446,870 | 336,825 | 278,697 | 198,615 | 167,042 |
| Interest expense | US$ in thousands | 24,996 | 488 | 2,905 | 105 | 307 |
| Interest coverage | 17.88 | 690.22 | 95.94 | 1,891.57 | 544.11 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $446,870K ÷ $24,996K
= 17.88
Based on the provided data, the interest coverage ratio for Medpace Holdings Inc has shown significant fluctuations over the years. In December 2020, the interest coverage ratio was 544.11, reflecting a strong ability to cover interest expenses with operating income.
By December 2021, the interest coverage ratio had significantly improved to 1,891.57, indicating a substantial increase in the company's ability to cover its interest obligations with its earnings. This may suggest enhanced financial health and reduced financial risk.
However, in December 2022, the interest coverage ratio dropped to 95.94, signifying a reduction in the company's ability to cover its interest expenses with its operating income. This could raise concerns about the company's financial stability and its ability to meet debt obligations.
In December 2023, the interest coverage ratio improved to 690.22, indicating a recovery in the company's ability to cover its interest payments. Nonetheless, it remains important for Medpace Holdings Inc to continue monitoring and managing its debt levels effectively.
Lastly, by December 2024, the interest coverage ratio decreased to 17.88, showing a significant decline in the company's ability to cover its interest expenses with its earnings. This may raise alarms about the company's financial health and its capacity to manage its debt obligations effectively.
Overall, the fluctuations in Medpace Holdings Inc's interest coverage ratio highlight the importance of closely monitoring the company's financial performance and debt management practices to ensure long-term financial stability and sustainability.
Peer comparison
Dec 31, 2024