Medpace Holdings Inc (MEDP)

Interest coverage

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 446,870 408,812 381,447 354,690 336,825 325,936 318,855 300,698 278,697 257,121 233,007 215,219 198,615 198,748 191,457 179,137 167,042 148,172 131,741 136,872
Interest expense (ttm) US$ in thousands 24,996 18,957 11,534 7,435 4,176 3,159 4,638 3,820 3,013 2,209 1,648 1,338 2,194 2,457 2,002 1,998 2,062 2,164 1,849 2,363
Interest coverage 17.88 21.57 33.07 47.71 80.66 103.18 68.75 78.72 92.50 116.40 141.39 160.85 90.53 80.89 95.63 89.66 81.01 68.47 71.25 57.92

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $446,870K ÷ $24,996K
= 17.88

Medpace Holdings Inc has shown a generally positive trend in its interest coverage ratio over the years. The interest coverage ratio measures the company's ability to pay its interest expenses on outstanding debt.

The interest coverage ratio has improved steadily from 57.92 in March 2020 to 17.88 in December 2024. This indicates that the company's earnings before interest and taxes (EBIT) are sufficient to cover its interest payments. Notably, the ratio peaked at 160.85 in March 2022, reflecting a strong ability to meet interest obligations during that period.

However, there was a slight decline in the interest coverage ratio in the latter half of 2024, dropping from 47.71 in March 2024 to 17.88 in December 2024. This decrease may suggest a potential strain on the company's ability to cover interest expenses with its operating income during that period.

Overall, it is important for investors and creditors to monitor Medpace Holdings Inc's interest coverage ratio closely to ensure the company's financial health and ability to meet its debt obligations.