Parsons Corp (PSN)

Days of sales outstanding (DSO)

		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	Dec 31, 2019
Receivables turnover		4.30	4.21	4.04	4.56	4.09	3.79	4.28	4.46	4.29	3.98	4.36	4.76	4.48	4.51	4.37	4.39	3.87	4.19	4.09	4.42
DSO	days	84.84	86.80	90.29	80.06	89.28	96.34	85.30	81.78	85.06	91.82	83.65	76.74	81.49	81.00	83.53	83.18	94.36	87.01	89.21	82.65

September 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.30
= 84.84

The Days Sales Outstanding (DSO) ratio for Parsons Corp has fluctuated over the past several quarters. Based on the data provided, the DSO ranged from a low of 76.74 days in March 2022 to a high of 96.34 days in June 2023.

It is noteworthy that the DSO has shown an overall increasing trend from December 2021 to September 2024. This could indicate potential issues with collecting accounts receivable efficiently or extending credit terms to customers.

A high DSO suggests that the company is taking longer to collect payments from its customers, which may impact cash flow and liquidity. Conversely, a lower DSO would indicate that the company is collecting payments more quickly, which can be a positive sign of strong efficiency in managing accounts receivable.

It would be advisable for Parsons Corp to closely monitor and potentially improve their accounts receivable management practices to stabilize or reduce the DSO ratio in order to maintain healthy cash flow and liquidity.