Parsons Corp (PSN)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	453,548	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
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
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
Cash ratio		0.24	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

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 fluctuated over the period under review, ranging from a low of 0.11 in March 2020 to a high of 0.50 in September 2020. The cash ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio is generally preferred as it signifies a healthier liquidity position.

The trend shows that the cash ratio peaked in September 2020 at 0.50 before declining to 0.24 by December 2024. This decline suggests a potential decrease in the company's liquidity position over the years, which could be a cause for concern.

Additionally, the company experienced some fluctuations in its cash ratio throughout the years, with peaks and troughs occurring at different points. It is important for the company to closely monitor its cash position and manage its liquidity effectively to ensure it can meet its short-term obligations efficiently.