Parsons Corp (PSN)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	161,149	96,664	64,072	98,541	120,534
Total stockholders’ equity	US$ in thousands	2,287,210	2,043,570	1,900,770	1,813,770	1,629,890
ROE		7.05%	4.73%	3.37%	5.43%	7.40%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $161,149K ÷ $2,287,210K
= 7.05%

The return on equity (ROE) of Parsons Corp has shown fluctuating trends over the past five years. In 2023, the ROE increased to 7.05%, a significant improvement from the previous year's ROE of 4.73%. This suggests that the company was able to generate a higher return for its shareholders in 2023 compared to 2022.

The ROE in 2023 was also higher compared to 2021, indicating further improvement in the company's profitability and efficiency in generating returns on shareholders' equity. However, the ROE in 2023 was still lower than in 2019 when it stood at 7.40%, indicating that the company has not yet fully recovered to its previous level of profitability.

Overall, while Parsons Corp's ROE has shown variability over the past five years, the recent increase in 2023 suggests positive momentum in the company's ability to generate returns for its shareholders. It will be important to continue monitoring the company's financial performance to assess its long-term sustainability and profitability.