Parsons Corp (PSN)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	123,792	78,002	24,173	193,417	114,774	109,570	60,694	32,233	13,220	-27,658	-48,518	-67,154	857,698	881,940	917,133	920,852	982,133	979,052	913,751	904,200
Revenue (ttm)	US$ in thousands	6,264,580	5,873,900	5,562,230	5,420,030	5,029,810	4,747,920	4,402,530	4,178,698	4,025,763	3,849,036	3,719,087	3,642,242	3,654,190	3,700,975	3,802,012	3,900,269	3,976,446	3,996,148	4,003,311	3,932,510
Gross profit margin		1.98%	1.33%	0.43%	3.57%	2.28%	2.31%	1.38%	0.77%	0.33%	-0.72%	-1.30%	-1.84%	23.47%	23.83%	24.12%	23.61%	24.70%	24.50%	22.82%	22.99%

September 30, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $123,792K ÷ $6,264,580K
= 1.98%

Parsons Corp's gross profit margin has exhibited significant fluctuation over the past few quarters. The trend indicates inconsistency in the company's ability to generate profits from its core business operations.

In the most recent quarter, ending on September 30, 2024, the gross profit margin stood at 1.98%, showing a slight improvement from the previous quarter at 1.33%. However, the margin remains relatively low compared to historical levels.

Looking back, the company experienced a notable peak in gross profit margin in the fourth quarter of 2021, at 23.47%, which then increased to 23.83% in the first quarter of 2022 and further to 24.12% in the second quarter of 2022. However, the margin started declining in the following quarters with negative values in the last two quarters of 2022.

Overall, the recent trend suggests that Parsons Corp has been facing challenges in maintaining a consistent level of gross profitability. This inconsistency could be a cause for concern as it may impact the company's overall financial performance and sustainability in the long term. Further analysis of the underlying factors contributing to these fluctuations would be necessary to determine appropriate strategies for improvement.