Parsons Corp (PSN)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Current ratio		1.52	1.55	1.58	1.55	1.33

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,137,530K ÷ $1,410,880K
= 1.52

The current ratio of Parsons Corp has been relatively stable over the past five years, ranging from 1.33 to 1.58. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that Parsons Corp has more current assets than current liabilities, suggesting a healthy liquidity position.

The slight fluctuations in the current ratio over the years could indicate varying levels of short-term liquidity management by the company. Overall, the relatively consistent current ratio values above 1 demonstrate that Parsons Corp has generally maintained a strong ability to meet its short-term financial obligations using its current assets. However, it is important for the company to monitor and manage its current assets and liabilities effectively to ensure continued liquidity stability.