Medpace Holdings Inc (MEDP)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	336,825	278,697	198,615	167,042	127,263
Interest expense	US$ in thousands	488	2,905	105	307	1,568
Interest coverage		690.22	95.94	1,891.57	544.11	81.16

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $336,825K ÷ $488K
= 690.22

Interest coverage for Medpace Holdings Inc has shown significant fluctuations over the past five years. In 2023, the interest coverage ratio was 690.22, a substantial increase from the 2022 ratio of 95.94. This indicates that the company's ability to meet its interest obligations has strengthened significantly in 2023.

The interest coverage ratio was notably high in 2021 at 1,891.57, suggesting that the company had ample earnings to cover its interest expenses that year. However, the absence of data for 2020 makes it challenging to assess the company's performance that year.

In 2019, the interest coverage ratio was 81.16, indicating that the company's ability to cover its interest payments was relatively lower compared to the following years. Overall, the trend in interest coverage for Medpace Holdings Inc has been positive, with substantial improvements in recent years, highlighting the company's enhanced financial stability and ability to service its debt obligations.