Parsons Corp (PSN)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	78,676	54,172	28,241	161,149	144,372	126,496	101,550	96,664	97,506	87,293	75,700	64,072	56,710	78,010	94,607	98,541	90,652	106,806	123,766	120,534
Total stockholders’ equity	US$ in thousands	2,312,450	2,218,510	2,149,670	2,287,210	2,172,740	2,119,430	2,063,880	2,043,570	1,953,070	1,928,180	1,918,190	1,900,770	1,824,080	1,813,460	1,796,800	1,813,770	1,727,500	1,667,550	1,635,260	1,629,890
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%

September 30, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $78,676K ÷ $2,312,450K
= 3.40%

Parsons Corp's return on equity (ROE) has fluctuated over the past few years. The ROE for the most recent quarter, ending September 30, 2024, was 3.40%, showing a slight improvement from the previous quarter at 2.44%. However, compared to the peak ROE of 7.57% in the third quarter of 2020, the current ROE remains relatively low.

The average ROE for Parsons Corp over the analyzed period is approximately 5.20%. This suggests that the company's ability to generate profits from shareholders' equity has been somewhat inconsistent, with some quarters performing better than others.

It is important for Parsons Corp to focus on improving its ROE levels to enhance shareholder value. This can be achieved through effective cost management, revenue growth strategies, and optimizing the utilization of assets. Monitoring and addressing the factors contributing to fluctuations in ROE will be crucial for sustaining long-term financial performance and competitiveness.