Parsons Corp (PSN)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	6,398,400	5,226,610	4,146,450	3,709,400	3,901,360
Payables	US$ in thousands	207,589	242,821	201,428	196,286	225,679
Payables turnover		30.82	21.52	20.59	18.90	17.29

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $6,398,400K ÷ $207,589K
= 30.82

Parsons Corp's payables turnover has shown a consistent increasing trend over the past five years, with values of 17.29 in December 31, 2020, 18.90 in December 31, 2021, 20.59 in December 31, 2022, 21.52 in December 31, 2023, and 30.82 in December 31, 2024. This indicates that the company is managing its accounts payable effectively, taking less time to pay off its suppliers. A higher payables turnover ratio suggests that the company is efficiently utilizing its working capital and maintaining good relationships with its suppliers. The significant increase in the payables turnover ratio from 2023 to 2024 may indicate improved liquidity and potentially better negotiation terms with suppliers. Overall, the increasing trend in payables turnover reflects positively on Parsons Corp's financial management in terms of managing its accounts payable efficiently.