Parsons(Psn) Financials: Return On Assets Compared To Industry Average, Plus Other Key Ratios
Profitability Trend (Last 5 Years)
Profitability - return on assets
This chart shows the historical trend of return on assets for PSN compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Return on Assets (ROA)
Definition: ROA shows how efficiently the company turns everything it owns — its entire asset base — into net profit after all costs and taxes. A higher ROA means the business squeezes more profit from its assets. Lower ROA might reflect poor asset utilization or heavy reliance on expensive financing.
Interpretation:
• In '2021', PSN's return on assets was 1.7%, representing returns generated from total assets. Industry average for EDP Services in '2021' stood at -26.1%.
• In '2022', PSN's return on assets was 2.4%, representing returns generated from total assets. The increase since '2021' reflects strengthening financial performance. Industry average for EDP Services in '2022' stood at -31.0%. Industry average declined by 4.9% from previous year.
• In '2023', PSN's return on assets was 3.6%, representing returns generated from total assets. The increase since '2022' reflects strengthening financial performance. Industry average for EDP Services in '2023' stood at -26.6%. Industry average increased by 4.5% compared to previous year.
• In '2024', PSN's return on assets was 4.6%, representing returns generated from total assets. The increase since '2023' reflects strengthening financial performance. Industry average for EDP Services in '2024' stood at -29.2%. Industry average declined by 2.7% from previous year.
Overall, PSN's return on assets has been volatile but showed an upward trend over the past 4 years.
Formula: ROA = Net Income / Total Assets
Good Range: Commonly 5%-15%.