Parsons Corp (PSN)

Working capital 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 current assets	US$ in thousands	2,137,530	1,719,780	1,632,350	1,843,130	1,526,410
Total current liabilities	US$ in thousands	1,410,880	1,108,120	1,030,780	1,187,410	1,144,380
Working capital turnover		7.46	6.83	6.05	5.95	10.29

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,418,280K ÷ ($2,137,530K – $1,410,880K)
= 7.46

The working capital turnover for Parsons Corp has shown a positive trend over the past five years, increasing from 5.95 in 2020 to 7.46 in 2023. This indicates that the company is generating more revenue relative to its investment in working capital. A higher working capital turnover ratio reflects efficient management of working capital, suggesting that Parsons Corp is effectively utilizing its current assets and liabilities to support its operations and generate sales. The significant improvement in the working capital turnover ratio from 2019 to 2023 highlights the company's ability to optimize its working capital management practices, potentially leading to improved liquidity and profitability.