Parsons Corp (PSN)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,418,280 | 4,176,290 | 3,641,260 | 3,902,880 | 3,930,490 |
| Total assets | US$ in thousands | 4,804,060 | 4,198,140 | 3,830,940 | 3,937,700 | 3,450,370 |
| Total asset turnover | 1.13 | 0.99 | 0.95 | 0.99 | 1.14 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,418,280K ÷ $4,804,060K
= 1.13
The total asset turnover of Parsons Corp has fluctuated over the past five years. The ratio was at its lowest in 2019 at 0.95, indicating that the company generated $0.95 in revenue for every dollar of assets it owned during that year. The ratio then improved in 2020 and 2022 to 0.99, showing a slight increase in efficiency in generating sales relative to its asset base.
In 2023, the total asset turnover further increased to 1.13, signaling that Parsons Corp generated $1.13 in revenue for each dollar of assets it held. This suggests that the company has become more efficient in utilizing its assets to drive sales growth in the most recent year.
Overall, the trend in total asset turnover indicates that Parsons Corp has shown fluctuations in its ability to efficiently generate revenue relative to its asset base over the five-year period. The recent improvement in the ratio in 2023 may indicate better operational efficiency and effective utilization of assets to drive revenue growth.
Peer comparison
Dec 31, 2023