Parsons Corp (PSN)

Debt-to-equity ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	745,963	743,605	591,922	539,998	249,353
Total stockholders’ equity	US$ in thousands	2,287,210	2,043,570	1,900,770	1,813,770	1,629,890
Debt-to-equity ratio		0.33	0.36	0.31	0.30	0.15

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $745,963K ÷ $2,287,210K
= 0.33

The debt-to-equity ratio of Parsons Corp has exhibited a fluctuating trend over the past five years, ranging from 0.15 to 0.36. The ratio indicates the proportion of debt used to finance the company's operations compared to equity.

The ratio was at its lowest in 2019 at 0.15, suggesting a conservative capital structure with a higher reliance on equity financing. However, in the subsequent years, the ratio increased, reaching its peak in 2022 at 0.36, indicating a higher level of debt utilized in the company's capital structure compared to equity.

In 2023, the debt-to-equity ratio decreased to 0.33, but it still remains above the levels seen in 2019 and 2020. This indicates that the company has increased its debt relative to equity but has managed to reduce it compared to the previous year.

Overall, the trend in the debt-to-equity ratio of Parsons Corp suggests a shift towards a more leveraged capital structure, with increasing reliance on debt financing in recent years. Investors and stakeholders may want to monitor this trend to assess the company's risk and financial health.