Parsons Corp (PSN)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 191,672 | 29,835 | -68,131 | 1,522 | -103,105 |
| Revenue | US$ in thousands | 5,418,280 | 4,176,290 | 3,641,260 | 3,902,880 | 3,930,490 |
| Gross profit margin | 3.54% | 0.71% | -1.87% | 0.04% | -2.62% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $191,672K ÷ $5,418,280K
= 3.54%
The gross profit margin of Parsons Corp has shown a fluctuating trend over the past five years. In 2019 and 2021, the company experienced negative gross profit margins of -2.62% and -1.87%, respectively, indicating that the cost of goods sold exceeded the revenue generated from sales during those periods. However, the company made significant improvements in 2020 and 2022, achieving positive gross profit margins of 0.04% and 0.71%, respectively.
Notably, in 2023, the gross profit margin increased to 3.54%, reflecting a substantial improvement in the company's ability to generate profit from its core business activities. This positive trend suggests that Parsons Corp has been able to effectively manage its production costs and pricing strategies to enhance profitability. Overall, the recent improvement in gross profit margin indicates a positive performance for the company in terms of generating profit from its operations.
Peer comparison
Dec 31, 2023