Parsons Corp (PSN)

Debt-to-capital ratio

		Dec 31, 2024	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
Long-term debt	US$ in thousands	784,096	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	—	—
Total stockholders’ equity	US$ in thousands	2,416,390	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
Debt-to-capital ratio		0.24	0.33	0.36	0.37	0.25	0.27	0.26	0.27	0.27	0.26	0.29	0.24	0.24	0.24	0.25	0.25	0.23	0.24	0.00	0.00

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 of Parsons Corp has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio remained relatively stable between the range of 0.00 to 0.25 in the initial period but experienced an increase in the later period. From March 31, 2022, onwards, there was a noticeable uptrend in the ratio, reaching its peak at 0.37 on March 31, 2024. However, it declined slightly to 0.24 by December 31, 2024.

Overall, the debt-to-capital ratio indicates the proportion of the company's capital structure financed by debt, showing an increasing reliance on debt financing in the recent quarters. This trend suggests that Parsons Corp may be taking on more debt relative to its total capital, which could imply higher financial leverage and potential risks associated with debt repayment in the future.