Parsons Corp (PSN)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	6,706,840	5,418,280	4,176,290	3,641,260	3,902,880
Receivables	US$ in thousands	1,492,630	1,188,850	936,290	765,801	888,800
Receivables turnover		4.49	4.56	4.46	4.75	4.39

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $6,706,840K ÷ $1,492,630K
= 4.49

The receivables turnover ratio for Parsons Corp has shown a consistent trend over the past five years. The ratio has ranged from 4.39 to 4.75, with a slight fluctuation observed. This indicates that, on average, Parsons Corp collects its accounts receivable approximately 4.5 times a year. A higher receivables turnover ratio typically suggests efficient management of accounts receivable, as the company is able to collect outstanding payments more frequently.

Overall, the receivables turnover ratio for Parsons Corp reflects a solid performance in managing its receivables, maintaining a stable collection cycle over the years. However, it is important to consider industry benchmarks and compare the company's ratio with its peers to gain a better understanding of its efficiency in collecting outstanding payments.