Parsons Corp (PSN)
Profitability ratios
Return on sales
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 27.14% | 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% |
| Operating profit margin | 6.58% | 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% |
| Pretax margin | 1.83% | 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% |
| Net profit margin | 3.61% | 3.60% | 3.43% | 3.15% | 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% |
The profitability ratios of Parsons Corp show fluctuations over the quarters.
- The Gross Profit Margin increased from -1.84% in December 2021 to 27.14% in December 2024. This indicates an improvement in the company's ability to generate revenue after accounting for the cost of goods sold.
- The Operating Profit Margin also showed an upward trend, rising from 3.64% in December 2021 to 6.58% in December 2024. This suggests that the company has been able to control its operating expenses more effectively and improve its operational efficiency.
- The Pretax Margin fluctuated but generally increased from 2.41% in December 2021 to 1.83% in December 2024. This indicates the company's ability to generate profits before accounting for taxes has varied somewhat but ended higher.
- The Net Profit Margin also experienced fluctuations but ultimately increased from 1.76% in December 2021 to 3.61% in December 2024. This suggests that the company has managed to enhance its profitability after accounting for all expenses, including taxes.
Overall, the trend in these profitability ratios indicates that Parsons Corp has shown improvement in its profitability over the quarters, with a significant increase in margins by the end of December 2024.
Return on investment
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.80% | 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% |
| Return on assets (ROA) | 4.28% | 4.15% | 3.84% | 3.44% | 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% |
| Return on total capital | 5.34% | 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% |
| Return on equity (ROE) | 9.73% | 9.76% | 9.07% | 8.16% | 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% |
Profitability Ratios Analysis for Parsons Corp:
1. Operating Return on Assets (Operating ROA): Over the period from March 2020 to December 2024, Parsons Corp's Operating ROA has improved consistently, starting at 2.66% and reaching 7.80% by December 2024. This indicates the company's ability to generate operating profits from its assets has increased significantly, reflecting operational efficiency and effective asset utilization.
2. Return on Assets (ROA): The ROA for Parsons Corp experienced fluctuations but generally showed an upward trend from 3.55% in March 2020 to 4.28% by December 2024. This indicates that the company has been improving its ability to generate profits relative to its total assets over the years, showcasing efficient asset management and profitability growth.
3. Return on Total Capital: The Return on Total Capital for Parsons Corp fluctuated, with a notable drop in March 2024 but recovering afterward. The ratio ranged from 2.32% in March 2024 to 8.20% in December 2023, with a steady increase overall. This suggests that the company's ability to generate returns from its total capital has shown improvement, albeit with some variability in performance.
4. Return on Equity (ROE): Parsons Corp's ROE exhibited a consistent upward trend from 7.57% in March 2020 to 9.73% by December 2024. This indicates that the company has been effectively utilizing shareholder equity to generate profits, reflecting a positive trend in shareholder wealth maximization and effective capital allocation.
In summary, Parsons Corp has shown steady improvement in its profitability ratios, reflecting enhanced operational efficiency, better asset utilization, and effective capital management over the analyzed period.