Parsons Corp (PSN)

Debt-to-capital ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	784,096	745,963	743,605	591,922	539,998
Total stockholders’ equity	US$ in thousands	2,416,390	2,287,210	2,043,570	1,900,770	1,813,770
Debt-to-capital ratio		0.24	0.25	0.27	0.24	0.23

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $784,096K ÷ ($784,096K + $2,416,390K)
= 0.24

The debt-to-capital ratio for Parsons Corp has shown a gradual increase over the past five years. Starting at 0.23 in December 2020, the ratio has risen to 0.24 in December 2021, further increasing to 0.27 by December 2022. However, in December 2023, there was a slight decrease to 0.25, followed by a return to 0.24 by December 2024.

This trend indicates an overall upward trajectory in the proportion of debt relative to total capital used by the company. A higher debt-to-capital ratio suggests that a larger portion of the company's funding is derived from debt, which can pose risks in terms of financial stability and interest rate exposure. It is essential for Parsons Corp to carefully manage this ratio to maintain a healthy balance between debt and equity financing sources.