Parsons Corp (PSN)

Receivables 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
Revenue (ttm)	US$ in thousands	6,510,460	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
Receivables	US$ in thousands	1,492,630	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
Receivables turnover		4.36	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

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $6,510,460K ÷ $1,492,630K
= 4.36

The receivables turnover ratio for Parsons Corp has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio ranged from a low of 3.79 to a high of 4.76 during this time frame, with an average value of approximately 4.24.

A higher receivables turnover ratio indicates that the company is able to collect its accounts receivable more efficiently. Parsons Corp generally maintained a healthy receivables turnover ratio above 4, indicating that it was able to convert its accounts receivable into cash at a relatively efficient pace.

However, there were some periods where the ratio dipped slightly, such as in June 30, 2022, and June 30, 2023. This could be due to various factors such as changes in the company's credit policies, industry-specific challenges, or economic conditions affecting customers' ability to pay on time.

Overall, the trend in Parsons Corp's receivables turnover ratio suggests that the company has been effective in managing its accounts receivable and converting them into cash, though periodic fluctuations highlight the importance of continuous monitoring and management of receivables to ensure optimal cash flow and financial health.