Parsons Corp (PSN)

Solvency ratios

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
Debt-to-assets ratio 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 0.07
Debt-to-capital ratio 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 0.13
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
Financial leverage ratio 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 2.12

The solvency ratios of Parsons Corp indicate the company's ability to meet its long-term financial obligations and the extent of its leverage. The debt-to-assets ratio has shown a relatively stable trend, indicating that the company has maintained a prudent level of debt compared to its total assets over the analyzed periods.

Similarly, the debt-to-capital ratio and debt-to-equity ratio have also exhibited consistent patterns, with a gradual increase over time. This suggests that Parsons Corp has been relying more on debt financing compared to its capital or equity, which may signal a higher level of financial risk.

The financial leverage ratio, which measures the proportion of a company's debt to its equity, has fluctuated but generally maintained at a moderate level. A high financial leverage ratio indicates a higher dependency on debt financing, which can amplify both returns and risks for the company.

Overall, while Parsons Corp's solvency ratios demonstrate stability and a manageable level of debt relative to assets and equity, its increasing reliance on debt financing warrants close monitoring to ensure sustainable financial health and long-term viability.

Coverage ratios

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
Interest coverage 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 3.13

The interest coverage ratio for Parsons Corp has exhibited some fluctuations over the past few quarters, with values ranging from 2.07 to 7.90. The ratio indicates the company's ability to meet its interest payments on outstanding debt, with higher values implying a stronger capacity to do so.

In the most recent quarter, the interest coverage ratio stood at 3.19, which suggests that the company's operating income was able to cover its interest expense 3.19 times. While this is a positive sign, it is lower compared to the previous quarter's ratio of 2.69.

Looking at the trend over the past few quarters, Parsons Corp's interest coverage ratio has generally remained above 2. This indicates that the company has been able to consistently generate sufficient earnings to cover its interest obligations. However, the ratio has seen some volatility, which may be worth monitoring closely to ensure the company's ability to service its debt obligations remains stable in the future.