Parsons Corp (PSN)

Solvency ratios

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
Debt-to-assets ratio 0.14 0.21 0.24 0.24 0.16 0.17 0.17 0.17 0.18 0.17 0.19 0.16 0.15 0.15 0.15 0.15 0.14 0.14 0.00 0.00
Debt-to-capital ratio 0.24 0.33 0.36 0.37 0.25 0.27 0.26 0.27 0.27 0.26 0.29 0.24 0.24 0.24 0.25 0.25 0.23 0.24 0.00 0.00
Debt-to-equity ratio 0.32 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
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

Parsons Corp's solvency ratios provide insight into the company's ability to meet its long-term debt obligations. The Debt-to-assets ratio has seen a gradual increase from 0.00 in March 2020 to 0.24 in June 2024, indicating a rise in debt relative to total assets over time. This could suggest a growing reliance on debt financing.

Similarly, the Debt-to-capital ratio displays an increasing trend from 0.00 in March 2020 to 0.36 in June 2024, signifying a higher proportion of debt in the company's capital structure. This could potentially raise concerns about the firm's financial risk and leverage levels.

The Debt-to-equity ratio has also shown a notable uptrend from 0.00 in March 2020 to 0.56 in June 2024, indicating a rising level of debt in relation to shareholders' equity. This escalating ratio could indicate a higher financial risk and reduced cushion for shareholders in case of financial distress.

Moreover, the Financial leverage ratio, which stood at 2.13 in March 2020, has fluctuated but generally increased to 2.36 by June 2024. This signifies an escalating level of financial leverage, which may imply increased financial risk and interest payment obligations.

Overall, the solvency ratios of Parsons Corp suggest a growing reliance on debt in its capital structure, potentially elevating financial risk and indicating a need for careful monitoring of the company's debt levels and repayment capabilities.

Coverage ratios

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
Interest coverage 3.31 3.19 2.69 2.07 7.90 7.45 7.29 6.63 6.88 7.87 7.92 6.97 5.96 5.07 6.07 7.40 7.73 7.78 7.12 3.93

Parsons Corp's interest coverage ratio has exhibited fluctuations over the years based on the provided data. The interest coverage ratio is a measure of a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest payments.

From March 31, 2020, to December 31, 2021, Parsons Corp's interest coverage ratio showed a generally increasing trend, peaking at 7.78 in September 2020. This indicates that the company's earnings before interest and taxes (EBIT) were sufficient to cover its interest expenses during this period.

However, in the subsequent quarters, the interest coverage ratio experienced a slight decline, reaching a low of 5.07 in September 2021. This could indicate increased pressure on the company's ability to cover its interest payments with its operating income.

In the following quarters, the interest coverage ratio showed some recovery, hovering around the range of 6 to 7. However, in March 2024 and June 2024, the interest coverage ratio dropped significantly to 2.07 and 2.69, respectively, suggesting a potential strain on the company's financial health in meeting its interest obligations.

Overall, Parsons Corp's interest coverage ratio has displayed variability, indicating the importance of monitoring the company's financial performance and debt management strategies to ensure its long-term financial stability.