Parsons Corp (PSN)

Payables 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
Cost of revenue (ttm)	US$ in thousands	6,140,790	5,795,900	5,538,060	5,226,620	4,915,040	4,638,350	4,341,820	4,146,446	4,012,529	3,876,684	3,767,605	3,709,396	2,796,492	2,819,035	2,884,879	2,979,417	2,994,310	3,017,092	3,089,557	3,028,307
Payables	US$ in thousands	300,217	252,838	274,140	242,821	266,345	237,229	209,462	201,428	200,847	194,696	157,080	196,286	188,761	191,688	219,220	225,679	208,307	209,858	235,381	216,613
Payables turnover		20.45	22.92	20.20	21.52	18.45	19.55	20.73	20.59	19.98	19.91	23.99	18.90	14.81	14.71	13.16	13.20	14.37	14.38	13.13	13.98

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,140,790K ÷ $300,217K
= 20.45

The payables turnover ratio for Parsons Corp has fluctuated over the past few years, ranging from a low of 13.13 to a high of 23.99. The ratio measures how many times a company pays off its accounts payable during a specific period. A higher turnover ratio indicates that the company is paying off its payables more frequently, which could imply efficient management of its cash flow and supplier relationships.

The increasing trend in payables turnover from 2020 to 2022 suggests that Parsons Corp has been able to improve its payables management efficiency during this period. However, there was a slight decrease in the ratio in 2023, followed by another increase in the most recent quarters of 2024.

Overall, a payables turnover ratio above 20 for most quarters indicates that Parsons Corp is effectively managing its accounts payable by paying them off multiple times throughout the year. This may help the company maintain good relationships with its suppliers and potentially benefit from any early payment discounts offered.