Parsons Corp (PSN)

Current 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
Total current assets	US$ in thousands	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	1,526,410
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
Current ratio		1.55	1.80	1.79	1.52	1.45	1.53	1.58	1.55	1.40	1.44	1.63	1.58	1.50	1.67	1.62	1.55	1.67	1.41	1.39	1.33

September 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,554,660K ÷ $1,649,550K
= 1.55

The current ratio of Parsons Corp has shown some fluctuations over the past few years. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.

From the data provided, we can see that the current ratio has ranged from a low of 1.33 to a high of 1.80. A current ratio of 1.55 as of September 30, 2024, indicates that the company has $1.55 in current assets for every $1 in current liabilities. This suggests that Parsons Corp has a relatively healthy liquidity position, as it is able to meet its short-term obligations comfortably.

It is important to note that a higher current ratio generally indicates a stronger liquidity position, as the company has more current assets relative to its current liabilities. However, a very high current ratio could potentially indicate that the company is not efficiently utilizing its current assets.

Overall, based on the current ratio trend for Parsons Corp, it appears that the company has been maintaining a healthy level of liquidity over the period analyzed, although there have been some fluctuations in the ratio. Further analysis would be needed to understand the factors driving these fluctuations and to assess the company's overall financial health.