Parsons Corp (PSN)

Receivables 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
Revenue (ttm)	US$ in thousands	6,264,580	5,873,900	5,562,230	5,420,030	5,029,810	4,747,920	4,402,530	4,178,698	4,025,763	3,849,036	3,719,087	3,642,242	3,654,190	3,700,975	3,802,012	3,900,269	3,976,446	3,996,148	4,003,311	3,932,510
Receivables	US$ in thousands	1,456,080	1,396,810	1,376,000	1,188,850	1,230,330	1,253,220	1,028,850	936,290	938,174	968,222	852,368	765,801	815,873	821,273	870,136	888,800	1,028,020	952,603	978,503	890,451
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

September 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $6,264,580K ÷ $1,456,080K
= 4.30

The receivables turnover ratio for Parsons Corp has shown fluctuations over the past several quarters, ranging from a low of 3.79 to a high of 4.76. The ratio measures the company's efficiency in collecting outstanding receivables from its customers during a specific period. A higher turnover ratio generally indicates that the company is able to collect its accounts receivable more quickly, which is a positive sign of strong liquidity and efficient credit management.

In the most recent quarter, the receivables turnover ratio was 4.30, which means that the company collected its average accounts receivable balance approximately 4.30 times during the period. This suggests that Parsons Corp has been fairly effective in managing its receivables and converting them into cash.

It is important to monitor the trend of the receivables turnover ratio over time to assess the company's ability to efficiently manage its receivables. Fluctuations in the ratio could be indicative of changes in the company's credit policies, customer payment behavior, or overall economic conditions. Overall, Parsons Corp's receivables turnover ratio appears to be relatively stable, indicating a consistent level of effectiveness in collecting outstanding receivables.