Parsons Corp (PSN)

Debt-to-capital 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 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
Debt-to-capital ratio		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	0.13

September 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,132,980K ÷ ($1,132,980K + $2,312,450K)
= 0.33

The debt-to-capital ratio for Parsons Corp has shown some fluctuations over the past few years. As of September 30, 2024, the ratio stood at 0.33, indicating that approximately 33% of the company's capital structure is funded by debt. This ratio has decreased from the previous quarter but remains higher compared to the ratios observed in the prior year.

The trend over the past few quarters shows that Parsons Corp has generally maintained a moderate level of leverage, with the ratio hovering around the mid to high 20% range in recent years. The slight increase in the ratio in the most recent quarter may suggest that the company has taken on slightly more debt relative to its capital base.

It is important to note that while a debt-to-capital ratio below 0.5 is typically considered healthy and indicates a lower risk of financial distress, fluctuations in this ratio should be further analyzed in conjunction with other financial metrics to assess the overall financial health and risk profile of the company. Further investigation into the drivers of changes in the debt-to-capital ratio, as well as a comparison with industry benchmarks, would provide additional context for evaluating Parsons Corp's leverage position.