Parsons Corp (PSN)

Fixed asset turnover

		Dec 31, 2024	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
Revenue (ttm)	US$ in thousands	6,510,460	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
Property, plant and equipment	US$ in thousands	111,575	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
Fixed asset turnover		58.35	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

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,510,460K ÷ $111,575K
= 58.35

Parsons Corp's fixed asset turnover has exhibited a consistent upward trend over the periods analyzed. Starting at a level of 32.13 in March 2020, the fixed asset turnover ratio increased steadily to reach 58.35 by December 2024. This indicates that Parsons Corp generates $58.35 in revenue for every dollar invested in fixed assets.

The trend suggests that Parsons Corp has been effectively utilizing its fixed assets to generate sales revenue over time. A higher fixed asset turnover ratio generally signifies better efficiency in asset utilization, indicating that the company is effectively managing and utilizing its fixed assets to drive revenue generation.

Overall, the increasing trend in Parsons Corp's fixed asset turnover ratio is a positive indicator of the company's operational efficiency and effectiveness in utilizing its fixed assets to generate sales revenue.