Parsons Corp (PSN)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	745,963	743,605	591,922	539,998	249,353
Total assets	US$ in thousands	4,804,060	4,198,140	3,830,940	3,937,700	3,450,370
Debt-to-assets ratio		0.16	0.18	0.15	0.14	0.07

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $745,963K ÷ $4,804,060K
= 0.16

The debt-to-assets ratio of Parsons Corp has shown a relatively stable trend over the past five years. The ratio has ranged from 0.07 to 0.18 during this period, indicating the company's ability to efficiently finance its operations with a combination of debt and equity.

In 2023, the debt-to-assets ratio decreased to 0.16 from 0.18 in 2022, suggesting a slight reduction in the proportion of debt relative to total assets. This could imply a lower financial risk for the company as it may be relying less on debt to fund its operations.

Overall, Parsons Corp's consistent management of its debt-to-assets ratio indicates a prudent approach to capital structure and financial risk management. However, it is important for the company to continue monitoring and optimizing this ratio to ensure a healthy balance between debt and equity in its capital structure.