Parsons Corp (PSN)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 428,066 | 288,358 | 185,666 | 132,446 | 177,815 |
| Revenue | US$ in thousands | 6,706,840 | 5,418,280 | 4,176,290 | 3,641,260 | 3,902,880 |
| Operating profit margin | 6.38% | 5.32% | 4.45% | 3.64% | 4.56% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $428,066K ÷ $6,706,840K
= 6.38%
Based on the data provided, Parsons Corp's operating profit margin has shown fluctuation over the past five years.
- As of December 31, 2020, the operating profit margin was 4.56%, indicating that for every dollar of revenue generated, the company retained 4.56 cents as operating profit.
- By December 31, 2021, the operating profit margin decreased to 3.64%, suggesting a decline in the company's operational efficiency or profitability compared to the previous year.
- However, in the subsequent years, there was an improvement in the operating profit margin. By December 31, 2022, it increased to 4.45%, followed by a further increase to 5.32% on December 31, 2023, and a significant rise to 6.38% by December 31, 2024.
This upward trend in the operating profit margin from 2022 to 2024 indicates that Parsons Corp has been able to enhance its operational efficiency and profitability over the period. It is essential for the company to continue this positive trajectory to ensure sustainable growth and financial health in the future.
Peer comparison
Dec 31, 2024