Parsons Corp (PSN)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,416,390 | 2,287,210 | 2,043,570 | 1,900,770 | 1,813,770 |
| ROE | 9.73% | 7.05% | 4.73% | 3.37% | 5.43% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $235,053K ÷ $2,416,390K
= 9.73%
Based on the data provided for Parsons Corp's return on equity (ROE) from December 31, 2020, to December 31, 2024, we observe fluctuations in the profitability metric over the five-year period.
The ROE decreased from 5.43% in 2020 to 3.37% in 2021, indicating a decline in the company's ability to generate profit from shareholders' equity. However, there was a slight improvement in ROE to 4.73% in 2022, suggesting a partial recovery in profitability.
In 2023, Parsons Corp experienced a notable increase in ROE to 7.05%, reflecting a more efficient utilization of equity to generate profits. The upward trend continued in 2024, with the ROE reaching 9.73%, marking a significant improvement in profitability compared to the previous years.
Overall, while the company faced some challenges in maintaining profitability in the initial years of the period under review, the subsequent years showed a positive trend with a substantial rise in ROE. This indicates potential improvements in operational efficiency and profitability for Parsons Corp, which may be attributed to strategic initiatives or changes in business performance over the years.
Peer comparison
Dec 31, 2024