Parsons Corp (PSN)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover — — — — — — — — — 4,355.82 — 2,909.33 — — — 826.24 — — — 238.71
Receivables turnover 4.30 4.21 4.04 4.56 4.09 3.79 4.28 4.46 4.29 3.98 4.36 4.76 4.48 4.51 4.37 4.39 3.87 4.19 4.09 4.42
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
Working capital turnover 6.92 5.12 5.18 7.46 8.09 6.93 6.66 6.83 8.73 7.94 5.88 6.05 6.95 5.16 5.50 5.95 4.76 8.72 8.88 10.29

The activity ratios of Parsons Corp indicate the efficiency of the company in managing its assets and liabilities during the specified periods.

1. Inventory Turnover: The company did not provide data for inventory turnover for most of the periods, but it did show a significant increase in inventory turnover from 826.24 in December 2020 to 2,909.33 in March 2022, and then to 4,355.82 in June 2022. This suggests that the company has been able to sell its inventory at a faster rate.

2. Receivables Turnover: The receivables turnover ratio remained relatively stable over the periods, ranging from 3.79 to 4.76. This indicates that the company is efficient in collecting payments from its customers.

3. Payables Turnover: The payables turnover ratio fluctuated over the periods, with values between 13.13 and 23.99. A higher payables turnover ratio generally indicates that the company is paying its suppliers more quickly.

4. Working Capital Turnover: The working capital turnover ratio varied over the periods, with values between 4.76 and 10.29. A higher working capital turnover ratio suggests that the company is efficiently utilizing its working capital to generate sales.

Overall, Parsons Corp appears to have been effectively managing its inventory, receivables, payables, and working capital during the observed periods, indicating a good level of operational efficiency and financial management.

Average number of days

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
Days of inventory on hand (DOH) days — — — — — — — — — 0.08 — 0.13 — — — 0.44 — — — 1.53
Days of sales outstanding (DSO) days 84.84 86.80 90.29 80.06 89.28 96.34 85.30 81.78 85.06 91.82 83.65 76.74 81.49 81.00 83.53 83.18 94.36 87.01 89.21 82.65
Number of days of payables days 17.84 15.92 18.07 16.96 19.78 18.67 17.61 17.73 18.27 18.33 15.22 19.31 24.64 24.82 27.74 27.65 25.39 25.39 27.81 26.11

The activity ratios provide insights into how efficiently Parsons Corp manages its inventory, accounts receivable, and accounts payable.

- Days of Inventory on Hand (DOH): The company's DOH has fluctuated over the periods provided, with the most recent data showing a very low level or even zero inventory days. This might suggest effective inventory management, potentially aligning production with demand to minimize excess inventory holding costs.

- Days of Sales Outstanding (DSO): Parsons Corp's DSO has also varied, with values ranging from around 76 days to 96 days. A lower DSO indicates that the company is efficient in collecting payments from customers, whereas a higher DSO may signal difficulties in collecting receivables or granting lenient credit terms.

- Number of Days of Payables: The trend in the days of payables shows consistency over the periods, hovering around 15 to 28 days. A higher number of days of payables suggests the company is taking longer to pay its suppliers, potentially indicating a favorable strategy to manage cash flow by stretching payment terms.

Overall, the activity ratios indicate that Parsons Corp may be effectively managing its inventory levels, collecting receivables, and handling payables efficiently. However, further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's performance in these areas.

Long-term

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
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
Total asset turnover 1.15 1.12 1.09 1.13 1.06 1.05 1.03 1.00 0.98 0.94 0.98 0.95 0.96 0.96 0.98 0.99 1.01 1.16 1.15 1.14

The fixed asset turnover ratio for Parsons Corp has shown a consistent upward trend over the past several quarters, indicating that the company is generating more revenue per dollar of fixed assets invested. This suggests increased efficiency in utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has fluctuated within a narrower range but has generally improved over time. This ratio measures the company's ability to generate sales from all its assets, including fixed and current assets. The increasing trend implies that Parsons Corp is becoming more efficient in utilizing all its assets to generate revenue.

Overall, the long-term activity ratios of Parsons Corp indicate improving efficiency in both utilizing fixed assets and generating sales from all assets over the quarters in consideration. These trends suggest that the company is managing its assets effectively and driving better revenue generation.