Parsons Corp (PSN)

Debt-to-equity 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-equity ratio 0.32 0.33 0.36 0.31 0.30

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $784,096K ÷ $2,416,390K
= 0.32

Based on the provided data, Parsons Corp's debt-to-equity ratio has been relatively stable over the past five years, ranging from 0.30 to 0.36. This indicates that the company has been maintaining a moderate level of debt relative to its equity during this period.

The slight increase in the ratio from 0.30 in 2020 to 0.36 in 2022 suggests a potential increase in the company's debt levels compared to its equity. However, the subsequent decrease in the ratio to 0.32 by December 31, 2024, indicates a possible reduction in debt relative to equity.

Overall, the trend in Parsons Corp's debt-to-equity ratio indicates a manageable level of debt and a reasonably strong equity position, which can be viewed positively by investors and creditors as it implies a balanced capital structure.