Parsons Corp (PSN)

Payables 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
Cost of revenue (ttm) US$ in thousands 6,398,400 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
Payables US$ in thousands 207,589 300,217 252,838 274,140 242,821 266,345 237,229 209,462 201,428 200,847 194,696 157,080 196,286 188,761 191,688 219,220 225,679 208,307 209,858 235,381
Payables turnover 30.82 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

December 31, 2024 calculation

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

The payables turnover ratio for Parsons Corp has shown a varying trend over the period from March 31, 2020, to December 31, 2024. The ratio started at 13.13 in March 2020 and peaked at 30.82 in December 2024, showing an increasing pattern with some fluctuations.

The ratio indicates the efficiency with which the company manages its accounts payable by paying off its suppliers. A higher turnover ratio is generally considered favorable as it signifies that the company is paying its suppliers more quickly, which can reflect good working capital management.

The company's payables turnover ratio has generally improved over the years, reaching its highest point in December 2024. This may suggest that Parsons Corp has been able to negotiate better payment terms with its suppliers or has improved its operating efficiency in processing payments. However, it is essential to continue monitoring this ratio to ensure that the increasing trend is sustainable and does not indicate potential liquidity issues or strained supplier relationships.