Parsons Corp (PSN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 453,548 | 272,943 | 262,539 | 342,608 | 483,609 |
| Short-term investments | US$ in thousands | — | — | — | 1,275 | 3,606 |
| Total current liabilities | US$ in thousands | 1,915,640 | 1,410,880 | 1,108,120 | 1,030,780 | 1,187,410 |
| Cash ratio | 0.24 | 0.19 | 0.24 | 0.33 | 0.41 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($453,548K
+ $—K)
÷ $1,915,640K
= 0.24
The cash ratio of Parsons Corp has shown a gradual decline over the past five years, decreasing from 0.41 in December 2020 to 0.24 in December 2022, before bouncing back slightly to 0.24 in December 2024. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has weakened overall during this period. The declining trend suggests that Parsons Corp may be facing challenges in maintaining sufficient liquid assets relative to its current liabilities. Management may need to monitor and improve the company's cash management strategies to ensure better liquidity and financial stability in the future.
Peer comparison
Dec 31, 2024