Parsons Corp (PSN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 3.54% | 0.71% | -1.87% | 0.04% | -2.62% |
| Operating profit margin | 5.32% | 4.45% | 3.64% | 4.56% | 2.34% |
| Pretax margin | 4.01% | 3.26% | 2.41% | 3.61% | 1.29% |
| Net profit margin | 2.97% | 2.31% | 1.76% | 2.52% | 3.07% |
Parsons Corp's profitability ratios have shown a positive trend over the past five years. The gross profit margin, a measure of a company's efficiency in generating revenue after accounting for the costs of goods sold, has consistently improved from negative figures in 2021 and 2019 to 3.54% in 2023, indicating better management of production costs.
The operating profit margin, which reveals the percentage of profit generated from operations before interest and taxes, has also increased steadily from 2.34% in 2019 to 5.32% in 2023, showcasing improved operational efficiency and cost control measures.
Similarly, the pretax margin, representing the proportion of earnings before taxes in relation to total revenue, has shown a positive trajectory, reaching 4.01% in 2023, reflecting enhanced financial performance and effective tax planning strategies.
The net profit margin, a key indicator of overall profitability, has exhibited fluctuations but remained relatively stable and positive, indicating effective management of expenses and sustainable earnings growth.
Overall, Parsons Corp has demonstrated consistent improvement in its profitability ratios over the years, reflecting sound operational performance and financial management practices.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.00% | 4.42% | 3.46% | 4.52% | 2.67% |
| Return on assets (ROA) | 3.35% | 2.30% | 1.67% | 2.50% | 3.49% |
| Return on total capital | 8.20% | 5.72% | 4.23% | 6.88% | 3.96% |
| Return on equity (ROE) | 7.05% | 4.73% | 3.37% | 5.43% | 7.40% |
Parsons Corp has shown a consistent improvement in its profitability ratios over the past five years. The Operating return on assets (Operating ROA) has been gradually increasing from 2.67% in 2019 to 6.00% in 2023, indicating that the company is becoming more efficient in generating profits from its assets.
Return on assets (ROA) also improved steadily from 1.67% in 2021 to 3.35% in 2023, demonstrating the company's ability to generate profits relative to its total assets.
Return on total capital has shown a similar positive trend, increasing from 3.96% in 2019 to 8.20% in 2023, reflecting the company's effectiveness in utilizing both debt and equity to generate returns.
Return on equity (ROE) has also seen a consistent improvement, rising from 3.37% in 2021 to 7.05% in 2023, indicating that the company is generating higher returns for its shareholders.
Overall, Parsons Corp's profitability ratios show a positive trajectory, indicating improved operational efficiency and better utilization of assets and capital over the years.