Parsons Corp (PSN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 4.60% | 3.54% | 0.71% | -1.87% | 0.04% |
| Operating profit margin | 6.38% | 5.32% | 4.45% | 3.64% | 4.56% |
| Pretax margin | 4.65% | 4.01% | 3.26% | 2.41% | 3.61% |
| Net profit margin | 3.50% | 2.97% | 2.31% | 1.76% | 2.52% |
Parsons Corp's profitability ratios indicate a mixed performance over the years. The gross profit margin has been fluctuating, with a significant improvement from -1.87% in 2021 to 4.60% in 2024, suggesting better cost management and pricing strategies.
In terms of operating profit margin, the company has shown a steady increase from 3.64% in 2021 to 6.38% in 2024, which indicates effective operational efficiency and cost control measures. This improvement signifies the company's ability to generate profits from its core business activities.
Similarly, the pretax margin has also seen a consistent upward trend, from 2.41% in 2021 to 4.65% in 2024, indicating enhanced profitability before accounting for taxes. This suggests that the company is efficiently managing its expenses and generating higher earnings.
Moreover, the net profit margin has exhibited a positive trajectory, increasing from 1.76% in 2021 to 3.50% in 2024. This demonstrates that after accounting for all expenses, including taxes, Parsons Corp is effectively translating its revenues into net profit, reflecting improved overall profitability.
Overall, Parsons Corp's profitability ratios reflect an overall positive trend, with improvements in gross profit margin, operating profit margin, pretax margin, and net profit margin over the period under consideration.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.80% | 6.00% | 4.42% | 3.46% | 4.52% |
| Return on assets (ROA) | 4.28% | 3.35% | 2.30% | 1.67% | 2.50% |
| Return on total capital | 11.36% | 8.20% | 5.72% | 4.23% | 6.88% |
| Return on equity (ROE) | 9.73% | 7.05% | 4.73% | 3.37% | 5.43% |
Parsons Corp's profitability ratios have shown a mixed performance over the past five years.
- Operating Return on Assets (Operating ROA) decreased from 4.52% in 2020 to 3.46% in 2021, but then improved to 7.80% in 2024, indicating a fluctuating trend with a significant increase in the latest year.
- Return on Assets (ROA) also followed a similar pattern, decreasing from 2.50% in 2020 to 1.67% in 2021 before increasing to 4.28% in 2024, showing an upward trend in profitability efficiency over the years.
- Return on Total Capital rose from 6.88% in 2020 to 11.36% in 2024, demonstrating a consistent improvement in the company's ability to generate returns from its total capital employed.
- Return on Equity (ROE) displayed growth from 5.43% in 2020 to 9.73% in 2024, reflecting an increasing profitability trend for equity investors in the company.
Overall, Parsons Corp's profitability ratios indicate a varying yet generally positive performance in terms of efficiency in generating profits from assets, capital, and equity over the period under review. The improvement in these ratios over the years suggests an enhancement in the company's overall profitability and value creation for its stakeholders.