Parsons Corp (PSN)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	235,053	161,149	96,664	64,072	98,541
Total assets	US$ in thousands	5,487,960	4,804,060	4,198,140	3,830,940	3,937,700
ROA		4.28%	3.35%	2.30%	1.67%	2.50%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $235,053K ÷ $5,487,960K
= 4.28%

The return on assets (ROA) for Parsons Corp has fluctuated over the past five years, indicating varying levels of efficiency in generating profits relative to its total assets. The ROA decreased from 2.50% in 2020 to 1.67% in 2021, suggesting a decline in the company's ability to generate earnings from its asset base during that period. However, there was a subsequent improvement in 2022 with the ROA increasing to 2.30%, indicating a better utilization of assets to generate profits.

In 2023, Parsons Corp experienced a significant uptick in ROA to 3.35%, reflecting a notable increase in its profitability relative to its asset base. This indicates improved efficiency in utilizing assets to generate earnings for the company. The following year, in 2024, the ROA further improved to 4.28%, reaching its highest level in the five-year period. This substantial increase suggests a significant enhancement in the company's profitability and operational efficiency, demonstrating a strong ability to generate earnings from its assets.

Overall, the trend in ROA for Parsons Corp showcases variability but with an overall positive trajectory, indicating the company's efforts to enhance profitability and efficiency in leveraging its asset base for generating returns.