Parsons Corp (PSN)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	217,287	136,321	87,708	141,033	50,648
Revenue	US$ in thousands	5,418,280	4,176,290	3,641,260	3,902,880	3,930,490
Pretax margin		4.01%	3.26%	2.41%	3.61%	1.29%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $217,287K ÷ $5,418,280K
= 4.01%

Parsons Corp's pretax margin has shown a general upward trend over the past five years, indicating an improvement in the company's profitability before accounting for taxes. The pretax margin increased from 1.29% in 2019 to 4.01% in 2023. This growth suggests that Parsons Corp has been able to effectively manage its operating expenses and generate higher levels of operating income relative to its total revenue. Overall, the increasing trend in pretax margin reflects positively on the company's financial performance and indicates a strengthening of its operational efficiency over the years.