Parsons Corp (PSN)

Debt-to-equity 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-equity ratio		0.49	0.56	0.58	0.33	0.38	0.35	0.36	0.36	0.36	0.41	0.31	0.31	0.32	0.33	0.33	0.30	0.31	0.00	0.00	0.15

September 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,132,980K ÷ $2,312,450K
= 0.49

The debt-to-equity ratio of Parsons Corp has experienced fluctuations over the periods shown in the table. The ratio indicates the proportion of the company's debt financing relative to its equity financing. A higher ratio suggests higher financial leverage and risk, as the company relies more on debt to fund its operations.

Over the period, the trend indicates that the company's reliance on debt has been increasing, as evidenced by the rising ratio from 0.15 in March 2020 to 0.58 in March 2024. This could indicate a strategy to fuel growth or manage cash flow needs through debt financing.

However, it is important to note that a high debt-to-equity ratio may also make the company more vulnerable to economic downturns or interest rate changes, as higher debt levels require higher interest payments. Conversely, a lower ratio may indicate a more conservative financial structure with less reliance on debt.

Overall, a deeper analysis of the company's financial health, operating environment, and future outlook would be necessary to fully assess the implications of the changing debt-to-equity ratio for Parsons Corp.