Parsons Corp (PSN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,418,280 | 4,176,290 | 3,641,260 | 3,902,880 | 3,930,490 |
| Property, plant and equipment | US$ in thousands | 98,957 | 98,957 | 104,196 | 121,027 | 122,751 |
| Fixed asset turnover | 54.75 | 42.20 | 34.95 | 32.25 | 32.02 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,418,280K ÷ $98,957K
= 54.75
The fixed asset turnover ratio for Parsons Corp has shown a consistent upward trend over the past five years, indicating an improvement in the efficiency of utilizing fixed assets to generate revenue.
In 2019, the fixed asset turnover was 32.02, and it steadily increased to 34.95 in 2021, 42.20 in 2022, and further to 54.75 in 2023. This suggests that the company has been able to generate more sales revenue relative to its investment in fixed assets each year.
A higher fixed asset turnover ratio indicates that Parsons Corp is effectively managing and utilizing its fixed assets to generate sales, which is a positive sign of operational efficiency and productivity. This improvement over the years reflects positively on the company's asset management strategies and operational performance.
Peer comparison
Dec 31, 2023