Parsons Corp (PSN)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	4,804,060	4,198,140	3,830,940	3,937,700	3,450,370
Total stockholders’ equity	US$ in thousands	2,287,210	2,043,570	1,900,770	1,813,770	1,629,890
Financial leverage ratio		2.10	2.05	2.02	2.17	2.12

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,804,060K ÷ $2,287,210K
= 2.10

The financial leverage ratio of Parsons Corp has demonstrated some fluctuation over the past five years, ranging from 2.02 to 2.17. The trend indicates that the company's reliance on debt financing relative to equity has varied, with the ratio peaking in 2020 and experiencing a slight decrease in subsequent years. The most recent ratio of 2.10 suggests that, as of December 31, 2023, the company is utilizing more debt in its capital structure compared to equity. This indicates that the firm may have a higher level of financial risk due to its increased debt obligations. It is essential for stakeholders to monitor changes in the financial leverage ratio to assess the company's ability to meet its debt obligations and manage its financial risk effectively.