Parsons Corp (PSN)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	6,264,580	5,873,900	5,562,230	5,420,030	5,029,810	4,747,920	4,402,530	4,178,698	4,025,763	3,849,036	3,719,087	3,642,242	3,654,190	3,700,975	3,802,012	3,900,269	3,976,446	3,996,148	4,003,311	3,932,510
Property, plant and equipment	US$ in thousands	101,193	98,217	98,499	98,957	99,344	95,266	94,759	98,957	94,518	98,491	97,922	104,196	105,895	110,617	115,544	121,027	121,486	124,764	124,600	122,751
Fixed asset turnover		61.91	59.81	56.47	54.77	50.63	49.84	46.46	42.23	42.59	39.08	37.98	34.96	34.51	33.46	32.91	32.23	32.73	32.03	32.13	32.04

September 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,264,580K ÷ $101,193K
= 61.91

The fixed asset turnover ratio for Parsons Corp has been consistently increasing over the past few quarters, indicating improved efficiency in generating sales revenue from its fixed assets. The ratio increased from 32.04 in December 2019 to 61.91 in September 2024, reaching its highest level in the most recent quarter.

This trend suggests that Parsons Corp has been utilizing its fixed assets more effectively to generate revenue, which is a positive sign of operational efficiency. It shows that the company is making better use of its property, plant, and equipment to drive sales and improve overall business performance.

Furthermore, the significant increase in the fixed asset turnover ratio over time highlights Parsons Corp's commitment to optimizing its asset utilization and enhancing productivity within its operations. This improved efficiency can lead to higher profitability and shareholder value in the long term, reflecting positively on the company's financial health and operational strategy.