Medpace Holdings Inc (MEDP)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.54 | 2.36 | 2.51 | 2.67 | 2.96 | 3.16 | 3.60 | 4.02 | 3.50 | 3.80 | 4.64 | 2.22 | 1.74 | 1.76 | 1.73 | 1.69 | 1.73 | 1.64 | 1.66 | 1.58 |
The solvency ratios of Medpace Holdings Inc, based on the provided data, indicate a consistently strong financial position in terms of leverage and debt management.
The Debt-to-Assets ratio for the company has been consistently at 0.00 across all reported periods, suggesting that the company has not been relying heavily on debt to finance its assets. This indicates a low level of financial risk and a strong ability to cover obligations through its own resources.
Similarly, the Debt-to-Capital ratio has also remained at 0.00 throughout the reported periods, indicating that the company has been able to finance its operations primarily through equity capital rather than debt. This implies a healthy balance between debt and equity financing, reducing the financial risk associated with high levels of debt.
The Debt-to-Equity ratio has also consistently been at 0.00, further underscoring the company's strong financial position and ability to meet its obligations without relying heavily on debt.
The Financial Leverage ratio has shown some variation over time, increasing notably in the latter periods but remaining relatively moderate. This ratio measures the proportion of debt in the company's capital structure, and while the increase in recent periods may indicate a slightly higher level of leverage, the ratio still remains at a modest level compared to industry benchmarks.
Overall, the solvency ratios of Medpace Holdings Inc reflect a prudent financial strategy that prioritizes equity financing and maintains a low level of debt, positioning the company well to weather financial challenges and sustain long-term growth.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates that the company is more capable of meeting its interest obligations.
Analyzing Medpace Holdings Inc's interest coverage ratio over the past few years shows a generally positive trend. From March 31, 2020, to June 30, 2021, the ratio increased steadily from 57.92 to 95.63, indicating an improvement in the company's ability to cover its interest expenses.
However, the ratio started to decline from September 30, 2021, to December 31, 2022, dropping to 92.50. This downward trend continued until March 31, 2024, reaching a low of 47.71.
The sharp decline in the interest coverage ratio may raise concerns about the company's ability to meet its interest payments, especially as it dropped below the ideal threshold of 1.0. A lower ratio could suggest that the company is becoming more leveraged and may face challenges in servicing its debt.
Further monitoring of Medpace Holdings Inc's interest coverage ratio will be important to assess its financial health and ability to manage its debt obligations effectively.