Parsons Corp (PSN)

Debt-to-assets ratio

		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
Long-term debt	US$ in thousands	1,132,980	1,247,310	1,246,440	745,963	820,366	744,777	744,140	743,605	694,718	792,982	592,450	591,922	591,399	590,876	590,346	539,998	537,119	—	—	249,353
Total assets	US$ in thousands	5,443,340	5,238,730	5,098,440	4,804,060	4,732,990	4,507,510	4,255,810	4,198,140	4,094,990	4,109,800	3,808,840	3,830,940	3,823,930	3,839,300	3,865,000	3,937,700	3,918,760	3,451,180	3,488,600	3,450,370
Debt-to-assets ratio		0.21	0.24	0.24	0.16	0.17	0.17	0.17	0.18	0.17	0.19	0.16	0.15	0.15	0.15	0.15	0.14	0.14	0.00	0.00	0.07

September 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,132,980K ÷ $5,443,340K
= 0.21

The debt-to-assets ratio of Parsons Corp has shown some fluctuation over the past few years, ranging from 0.00 to 0.24. This ratio indicates the proportion of the company's assets that are financed through debt. A higher ratio implies a greater reliance on debt financing, while a lower ratio suggests a more conservative approach to debt.

In the most recent quarter of September 30, 2024, the debt-to-assets ratio stood at 0.21, indicating that 21% of the company's assets were financed by debt. Compared to the previous quarter, there was a slight decrease from 0.24 to 0.21.

Over the past few years, the company has generally maintained a moderate level of debt relative to its assets, with the ratio hovering around the 0.15 to 0.24 range. This suggests that Parsons Corp has been managing its debt levels prudently, balancing the benefits of debt financing with the associated risks. However, the company should continue to monitor its debt-to-assets ratio to ensure it remains at a sustainable level in line with its overall financial strategy and goals.