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.
Peer comparison
Dec 31, 2024