Parsons Corp (PSN)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,706,840 | 5,418,280 | 4,176,290 | 3,641,260 | 3,902,880 |
| Property, plant and equipment | US$ in thousands | 111,575 | 98,957 | 98,957 | 104,196 | 121,027 |
| Fixed asset turnover | 60.11 | 54.75 | 42.20 | 34.95 | 32.25 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,706,840K ÷ $111,575K
= 60.11
The fixed asset turnover ratio for Parsons Corp has been showing a positive trend over the past five years. It increased from 32.25 in 2020 to 60.11 in 2024, indicating that the company is generating more revenue from its fixed assets each year.
A high fixed asset turnover ratio signifies that the company is efficiently utilizing its fixed assets to generate sales. This can be a positive indicator of operational efficiency and effective asset management within the company.
The continuous increase in the fixed asset turnover ratio reflects potential improvements in operational processes, production efficiency, and overall business performance. This trend suggests that Parsons Corp has been able to increase its revenue generation relative to its investment in fixed assets, which is a positive sign for investors and stakeholders.
Overall, the analysis of Parsons Corp's fixed asset turnover ratio indicates a strong performance and efficient use of fixed assets to generate sales over the years.
Peer comparison
Dec 31, 2024