Parsons Corp (PSN)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	453,548	272,943	262,539	342,608	483,609
Short-term investments	US$ in thousands	—	—	—	1,275	3,606
Receivables	US$ in thousands	1,492,630	1,188,850	936,290	765,801	888,800
Total current liabilities	US$ in thousands	1,915,640	1,410,880	1,108,120	1,030,780	1,187,410
Quick ratio		1.02	1.04	1.08	1.08	1.16

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($453,548K + $—K + $1,492,630K) ÷ $1,915,640K
= 1.02

The quick ratio of Parsons Corp has been relatively stable over the past five years, ranging from 1.16 in December 31, 2020, to 1.02 in December 31, 2024. This indicates that the company has consistently maintained a strong ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 suggests that Parsons Corp has an adequate level of liquid assets to cover its current liabilities, providing a buffer against potential financial challenges. However, the slight downward trend in the quick ratio over the years may warrant further monitoring to ensure the company's continued ability to meet its short-term financial obligations effectively. Overall, the quick ratio figures suggest that Parsons Corp has maintained a healthy liquidity position during the period under review.