Parsons Corp (PSN)

Financial leverage ratio

		Dec 31, 2024	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
Total assets	US$ in thousands	5,487,960	5,443,340	5,238,730	5,098,440	4,804,060	4,732,990	4,507,510	4,255,810	4,198,140	4,094,990	4,109,800	3,808,840	3,830,940	3,823,930	3,839,300	3,865,000	3,937,700	3,918,760	3,451,180	3,488,600
Total stockholders’ equity	US$ in thousands	2,416,390	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
Financial leverage ratio		2.27	2.35	2.36	2.37	2.10	2.18	2.13	2.06	2.05	2.10	2.13	1.99	2.02	2.10	2.12	2.15	2.17	2.27	2.07	2.13

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,487,960K ÷ $2,416,390K
= 2.27

The financial leverage ratio of Parsons Corp has fluctuated over the period from March 31, 2020, to December 31, 2024, ranging from a low of 1.99 to a high of 2.37. This ratio measures the proportion of the company's debt to its equity and indicates the level of financial risk borne by the company.

An increasing trend in the financial leverage ratio suggests that the company is relying more on debt financing, which can amplify returns but also increase the risk of financial distress. Conversely, a decreasing trend may indicate a more conservative capital structure.

In the case of Parsons Corp, the ratio has shown some variability but has generally remained within a relatively narrow range, indicating a fairly stable capital structure over the period analyzed. However, the increase in the ratio in the latter part of the period, peaking at 2.37 by March 31, 2024, may warrant further investigation into the company's debt management strategies and overall financial health.