Parsons Corp (PSN)
Total asset 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 |
| Total assets | US$ in thousands | 5,487,960 | 4,804,060 | 4,198,140 | 3,830,940 | 3,937,700 |
| Total asset turnover | 1.22 | 1.13 | 0.99 | 0.95 | 0.99 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,706,840K ÷ $5,487,960K
= 1.22
Parsons Corp's total asset turnover has shown a fluctuating trend over the past five years. It was 0.99 at the end of 2020, decreased to 0.95 by the end of 2021, then increased to 0.99 again by the end of 2022. There was a significant improvement in 2023 with a total asset turnover of 1.13, followed by a further increase to 1.22 by the end of 2024.
A total asset turnover ratio of less than 1 can indicate that the company may not be efficiently utilizing its assets to generate sales. However, the increasing trend observed from 2020 to 2024 suggests that Parsons Corp has been able to enhance its asset utilization over the years, with a notable boost in 2023 and 2024.
This improvement in total asset turnover could be attributed to various factors such as better management of inventory, more effective sales strategies, or a streamlined asset base. Overall, a rising total asset turnover signifies an increased efficiency in generating sales revenue relative to the company's total assets, which can be seen as a positive indicator of operational performance and financial health.
Peer comparison
Dec 31, 2024