Medpace Holdings has a Cash Ratio of 0.43. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Medpace Holdings's Cash Ratio or its related term are showing as below:
MEDP'
s Cash Ratio Range Over the Past 10 Years
Min: 0.04 Med: 0.14 Max: 0.83
Current: 0.43
During the past 11 years, Medpace Holdings's highest Cash Ratio was 0.83. The lowest was 0.04. And the median was 0.14.
MEDP's Cash Ratio is ranked worse than 76.82% of 233
companies
in the Medical Diagnostics & Research industry
Industry Median: 1.05
vs MEDP: 0.43
Medpace Holdings Cash Ratio Historical Data
The historical data trend for Medpace Holdings's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Medpace Holdings's Cash Ratio
For the Diagnostics & Research subindustry, Medpace Holdings's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Medpace Holdings's Cash Ratio Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Medpace Holdings's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Medpace Holdings's Cash Ratio falls into.
Medpace Holdings Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Medpace Holdings's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Medpace Holdings (NAS:MEDP) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Medpace Holdings Cash Ratio Related Terms
Thank you for viewing the detailed overview of Medpace Holdings's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Medpace Holdings (Medpace Holdings) Business Description
Medpace is a late-stage contract research organization, or CRO, that provides full-service drug development and clinical trial services to small and midsized biotechnology, pharmaceutical, and medical device firms. Medpace also offers ancillary services such as bio-analytical laboratory services and imaging capabilities. The company was founded over 30 years ago, and it has over 5,400 employees across 40 countries. Medpace is headquartered in Cincinnati, Ohio, and its operations are principally based in the U.S., but it also operates in Europe, Asia, South America, Africa, and Australia. Cinven, a global private equity firm, acquired Medpace for $915 million in February 2014, and it exited Medpace in August 2018.
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