Parsons Corp (PSN)
Profitability ratios
Return on sales
| 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 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% |
| Operating profit margin | 6.48% | 6.37% | 6.10% | 5.32% | 5.25% | 5.16% | 4.57% | 4.44% | 4.45% | 4.03% | 3.83% | 3.64% | 3.48% | 4.15% | 4.73% | 4.56% | 4.04% | 3.70% | 2.32% | 2.34% |
| Pretax margin | 1.69% | 1.26% | 0.73% | 4.01% | 3.94% | 3.77% | 3.28% | 3.26% | 3.24% | 3.00% | 2.74% | 2.41% | 2.31% | 3.05% | 3.61% | 3.62% | 3.04% | 2.64% | 1.43% | 1.29% |
| Net profit margin | 1.26% | 0.92% | 0.51% | 2.97% | 2.87% | 2.66% | 2.31% | 2.31% | 2.42% | 2.27% | 2.04% | 1.76% | 1.55% | 2.11% | 2.49% | 2.53% | 2.28% | 2.67% | 3.09% | 3.07% |
Over the historical period from December 2019 to September 2024, Parsons Corp's profitability ratios have shown varying trends. The gross profit margin has fluctuated, with a significant decline from December 2021 to March 2022, but has since stabilized around the range of 1% to 2% from March 2023 to September 2024.
The operating profit margin has generally shown an upward trend, indicating improvements in efficiency and cost management. This suggests that the company has been able to control operating expenses more effectively over time.
The pretax margin has been relatively stable, with a slight decline in recent quarters compared to the peak in December 2019. This ratio indicates the company's ability to generate profits before accounting for taxes on its income.
The net profit margin has also shown some fluctuations but has generally remained within the range of 1% to 3% over the period analyzed. This profitability metric reflects the company's overall ability to generate profit from each dollar of revenue after accounting for all expenses, including taxes.
In conclusion, while there have been fluctuations in Parsons Corp's profitability ratios over the past few years, the company has demonstrated some improvements in operational efficiency and cost management, as evidenced by the upward trend in operating profit margins. However, continuous monitoring and strategic adjustments may be necessary to maintain and further enhance profitability in the future.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.45% | 7.14% | 6.65% | 6.00% | 5.58% | 5.43% | 4.73% | 4.42% | 4.38% | 3.77% | 3.74% | 3.46% | 3.33% | 4.00% | 4.65% | 4.52% | 4.10% | 4.28% | 2.66% | 2.67% |
| Return on assets (ROA) | 1.45% | 1.03% | 0.55% | 3.35% | 3.05% | 2.81% | 2.39% | 2.30% | 2.38% | 2.12% | 1.99% | 1.67% | 1.48% | 2.03% | 2.45% | 2.50% | 2.31% | 3.09% | 3.55% | 3.49% |
| Return on total capital | 4.46% | 3.39% | 2.32% | 8.20% | 7.65% | 7.24% | 6.06% | 5.72% | 5.64% | 4.86% | 4.75% | 4.23% | 4.36% | 5.61% | 6.66% | 6.88% | 6.12% | 7.36% | 4.68% | 3.96% |
| Return on equity (ROE) | 3.40% | 2.44% | 1.31% | 7.05% | 6.64% | 5.97% | 4.92% | 4.73% | 4.99% | 4.53% | 3.95% | 3.37% | 3.11% | 4.30% | 5.27% | 5.43% | 5.25% | 6.40% | 7.57% | 7.40% |
Parsons Corp's profitability ratios have shown varying trends over the past few quarters. The operating return on assets (Operating ROA) has been increasing steadily from 2.67% in Q2 2020 to 7.45% in Q3 2024, indicating improved operational efficiency in generating profits relative to its asset base.
The return on assets (ROA) has fluctuated more significantly, with a peak at 3.55% in Q2 2019 and a low of 0.55% in Q1 2024. However, it has shown some recent improvement, reaching 1.45% in Q3 2024, albeit still relatively low compared to historical highs.
Return on total capital has also seen fluctuations, with a peak of 8.20% in Q4 2019 and a low of 2.32% in Q1 2024. The ratio stood at 4.46% in Q3 2024, indicating the company's ability to generate returns from both equity and debt capital employed.
Return on equity (ROE) has followed a similar pattern to ROA, with a peak at 7.57% in Q2 2021 and a low of 1.31% in Q1 2024. The ratio improved to 3.40% in Q3 2024, reflecting the company's ability to generate profits for its shareholders relative to their equity investment.
Overall, Parsons Corp's profitability ratios show some mixed performance, with improvements in operating efficiency indicated by Operating ROA, but overall returns on assets, equity, and capital showing some volatility and room for further enhancement.