Parsons Corp (PSN)
Working capital 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 |
| Total current assets | US$ in thousands | 2,462,400 | 2,554,660 | 2,573,700 | 2,427,250 | 2,137,530 | 2,015,540 | 1,980,210 | 1,801,340 | 1,719,780 | 1,610,800 | 1,583,630 | 1,640,970 | 1,632,350 | 1,586,570 | 1,794,410 | 1,802,210 | 1,843,130 | 2,081,620 | 1,589,200 | 1,601,970 |
| Total current liabilities | US$ in thousands | 1,915,640 | 1,649,550 | 1,426,950 | 1,353,700 | 1,410,880 | 1,394,090 | 1,294,900 | 1,140,070 | 1,108,120 | 1,149,480 | 1,098,790 | 1,008,860 | 1,030,780 | 1,060,660 | 1,077,420 | 1,110,670 | 1,187,410 | 1,246,550 | 1,130,950 | 1,151,320 |
| Working capital turnover | 11.91 | 6.92 | 5.12 | 5.18 | 7.46 | 8.09 | 6.93 | 6.66 | 6.83 | 8.73 | 7.94 | 5.88 | 6.05 | 6.95 | 5.16 | 5.50 | 5.95 | 4.76 | 8.72 | 8.88 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,510,460K ÷ ($2,462,400K – $1,915,640K)
= 11.91
Parsons Corp's working capital turnover has shown fluctuations over the periods provided. The working capital turnover ratio indicates how efficiently a company is using its working capital to generate revenue. A higher ratio suggests that the company is effectively utilizing its working capital to support sales.
As per the data, the working capital turnover ratio ranged from a peak of 11.91 on December 31, 2024, to a low of 4.76 on September 30, 2020. There are evident variations in the ratio over the quarters, indicating changes in the company's efficiency in converting working capital into revenue.
Overall, it is important to further investigate the factors influencing these fluctuations to determine the reasons behind the changes in Parsons Corp's working capital turnover ratio and evaluate the effectiveness of the company's working capital management strategies.
Peer comparison
Dec 31, 2024