Medpace Holdings Inc (MEDP)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 0.06 |
| 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 | 0.08 |
| 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 | 0.09 |
| Financial leverage ratio | 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 | 1.57 | 1.55 | 1.55 | 1.62 |
The solvency ratios of Medpace Holdings Inc indicate the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing. The debt-to-assets ratio has shown a decreasing trend over the quarters, from 0.19 in Q2 2022 to 0.00 in Q4 2023, suggesting a more conservative capital structure with minimal reliance on debt to fund its assets.
The debt-to-capital and debt-to-equity ratios follow a similar pattern, declining from higher levels in earlier quarters to 0.00 in the most recent quarter. This indicates that the company has reduced its debt relative to both its total capital and equity, signaling improved financial stability and reduced leverage.
The financial leverage ratio, which measures the proportion of assets financed by debt, has decreased steadily from a high of 4.64 in Q2 2022 to 2.96 in Q4 2023. This indicates that the company has effectively reduced its reliance on debt financing, which may enhance its ability to withstand economic downturns or unexpected financial challenges.
Overall, the decreasing trend in these solvency ratios suggests that Medpace Holdings Inc has been successful in strengthening its financial position and reducing its debt levels over the quarters, which may improve its long-term financial stability and resilience.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 54.29 | 34.26 | 22.65 | 15.70 |
Interest coverage measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.
In the case of Medpace Holdings Inc, the interest coverage ratio has been fluctuating over the past eight quarters. In Q1 2022, the interest coverage ratio was extremely high at 5,816.73, which could be due to either a significant increase in earnings or a decrease in interest expenses during that period. This exceptionally high ratio suggests a robust ability to cover interest expenses many times over.
However, in subsequent quarters, the interest coverage ratio decreased significantly, reaching its lowest point of 68.75 in Q2 2023. This sharp decline may raise concerns about the company's ability to cover its interest expenses comfortably during that period.
Overall, the trend in Medpace Holdings Inc's interest coverage ratio shows significant variability, with periods of extremely high and low ratios. It is important for investors and creditors to closely monitor the company's financial performance and its ability to generate sufficient earnings to cover its interest expenses consistently.