Parsons Corp (PSN)

Cash ratio

		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	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	558,823	528,462	423,120	272,943	205,406	178,589	220,439	262,539	147,539	125,982	285,622	342,608	275,506	483,443	398,178	483,609	614,031	129,579	119,299	182,688
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	890	1,140	1,275	1,197	1,145	1,233	3,606	3,726	7,041	7,423	12,686
Total current liabilities	US$ in thousands	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	1,144,380
Cash ratio		0.34	0.37	0.31	0.19	0.15	0.14	0.19	0.24	0.13	0.12	0.28	0.33	0.26	0.45	0.36	0.41	0.50	0.12	0.11	0.17

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($558,823K + $—K) ÷ $1,649,550K
= 0.34

The cash ratio of Parsons Corp has shown some fluctuations over the past several quarters. It measures the company's ability to cover its short-term liabilities solely with its cash and cash equivalents.

Looking at the trend, we can see that the cash ratio has ranged from as low as 0.11 to as high as 0.50. The recent cash ratio of 0.34 suggests that the company had $0.34 in cash and cash equivalents for every $1 of current liabilities as of September 30, 2024. This indicates that Parsons Corp has a moderate level of liquidity to meet its short-term obligations with cash on hand.

It's worth noting that there was a significant decrease in the cash ratio from June 2022 to December 2022, dropping from 0.28 to 0.24. However, there has been a gradual increase in the cash ratio since then, reaching 0.34 as of September 2024. This improvement may suggest better management of cash and liquidity by the company.

Overall, while the cash ratio of Parsons Corp has fluctuated over the quarters, the recent ratio indicates a reasonable level of liquidity, which can provide some assurance to stakeholders about the company's ability to meet its short-term obligations using its cash resources.