Parsons (Parsons) ROCE %

: 9.67% (As of Dec. 2023)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Parsons's annualized ROCE % for the quarter that ended in Dec. 2023 was 9.67%.

Parsons ROCE % Historical Data

The historical data trend for Parsons's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Parsons Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

4.65

7.21

4.69

6.43

9.12

Parsons Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																7.52	6.86	9.77	10.21	9.67

Parsons ROCE % Calculation

Parsons's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	295.55	/	( ( (4198.142 - 1108.119)	+	(4804.061 - 1410.884) )	/ 2 )
	=	295.55	/	( (3090.023	+	3393.177)	/ 2 )
	=	295.55	/	3241.6
	=	9.12 %

Parsons's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	325.516	/	( ( (4732.988 - 1394.093)	+	(4804.061 - 1410.884) )	/ 2 )
	=	325.516	/	( ( 3338.895	+	3393.177 )	/ 2 )
	=	325.516	/	3366.036
	=	9.67 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Parsons (NYSE:PSN) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Parsons ROCE % Related Terms

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Parsons (Parsons) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Parsons Corp (NYSE:PSN) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

59P:Germany 59P:Germany

Address

5875 Trinity Parkway, Suite 300, Centreville, VA, USA, 21120

Website

https://www.parsons.com

Parsons Corp is a provider of technology-driven solutions in the defense, intelligence, and critical infrastructure markets. The business activities of the group are carried out through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment is a high-end service and technology provider to the U.S. government, delivering timely, cost-effective solutions for mission-critical projects, whereas the Critical Infrastructure segment provides integrated design and engineering services for complex physical and digital infrastructure around the globe.

Executives

George L. Ball	officer: Chief Financial Officer	10943 N. SAM HOUSTON PARKWAY W., HOUSTON TX 77064
Matthew Ofilos	officer: Chief Financial Officer	C/O PARSONS CORPORATION, 5875 TRINITY PARKWAY, #300, CENTREVILLE VA 20210
Ellen M. Lord	director	1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
Susan M. Balaguer	officer: Chief Human Resources Officer	C/O PARSONS, 5875 TRINITY PARKWAY #300, CENTREVILLE VA 20120
Carey A. Smith	officer: Chief Operating Officer	6210 ARDREY KELL ROAD, CHARLOTTE NC 28277
Michael Richard Kolloway	officer: See Remarks	5875 TRINITY PKWY #300, CENTREVILLE VA 20120
Harry T. Mcmahon	director	9200 OAKDALE AVENUE, SUITE 900, LOS ANGELES CA 91311
David C Wajsgras	director	870 WINTER STREET, WALTHAM MA 02451
Darren W Mcdew	director	100 ABBOTT PARK ROAD, ABBOTT PARK IL 60064
Letitia A Long	director	C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, #300, COLUMBIA MD 21046
Debra Fiori	officer: Chief People Officer	C/O PARSONS CORPORATION, 5875 TRINITY PARKWAY, #300, CENTREVILLE VA 20120
Charles L. Harrington	director, officer: See Remarks	5875 TRINITY PKWY #300, CENTREVILLE VA 20120
James F Mcgovern	director
M Christian Mitchell	director	355 S. GRAND AVE, SUITE 1750, LOS ANGELES CA 90071
Mark Holdsworth	director	140 S. LAKE AVE., STE. 304, PASADENA CA 91101