Par Pacific Holdings Inc (PARR)

Short-term

Turnover ratios

Based on the provided data for Par Pacific Holdings Inc, let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio indicates how efficiently the company manages its inventory. A higher ratio is generally preferred as it indicates that the company is selling goods quickly.
- Par Pacific's inventory turnover has fluctuated over the years, with a peak of 7.07 in 2020 and a low of 5.61 in 2021. In 2024, the ratio improved to 6.64, suggesting better inventory management compared to the previous year.

2. Receivables Turnover:
- The receivables turnover ratio measures how well a company collects its outstanding receivables during a specific period. A higher turnover indicates an efficient collection process.
- However, the data indicates that receivables turnover was not provided for any year, which makes it difficult to assess the efficiency of Par Pacific in collecting receivables.

3. Payables Turnover:
- The payables turnover ratio evaluates how quickly a company pays its suppliers. A higher ratio suggests that the company is paying its suppliers more frequently.
- Similar to receivables turnover, payables turnover data was not provided for any year, making it challenging to evaluate Par Pacific's payment strategy to suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio shows how effectively a company generates revenue per dollar of working capital. A higher turnover indicates efficient utilization of working capital.
- Par Pacific's working capital turnover was not available for 2020 and 2021. However, there was a significant decline in 2022 from 83.44 to 17.71 in 2023, and further decreased to 11.80 in 2024. This decline could be a reflection of a decrease in revenue generated per dollar of working capital.

In conclusion, while the inventory turnover ratio for Par Pacific Holdings Inc showed some fluctuations, the lack of data for receivables turnover and payables turnover hinders a comprehensive analysis of the company's efficiency in managing these aspects of its operations. Additionally, the declining trend in working capital turnover may indicate potential inefficiencies in generating revenue from working capital over the years.

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Average number of days

Based on the provided data for Par Pacific Holdings Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The DOH for Par Pacific Holdings Inc increased from 51.65 days as of December 31, 2020, to 65.08 days as of December 31, 2021, indicating that the company is holding inventory for a longer period before it is sold.
- Subsequently, the DOH decreased to 58.73 days as of December 31, 2022, and then increased to 64.31 days as of December 31, 2023, before dropping to 54.97 days as of December 31, 2024.
- Overall, fluctuations in the DOH can indicate changes in inventory management efficiency, where a lower number of days may suggest improved inventory turnover and better liquidity.

2. Days of Sales Outstanding (DSO):
- The provided data lacks information on Days of Sales Outstanding (DSO) for Par Pacific Holdings Inc for the specified years. DSO measures the average number of days it takes for the company to collect revenue after a sale.
- Without DSO data, it is challenging to assess how efficiently the company is collecting revenue from its customers.

3. Number of Days of Payables:
- Similarly, the data does not include information on the Number of Days of Payables for Par Pacific Holdings Inc for the specified years. This ratio indicates the average number of days a company takes to pay its suppliers.
- The absence of this data makes it difficult to evaluate the company's management of its payables and potential impact on cash flow and working capital.

In summary, the analysis of Par Pacific Holdings Inc's activity ratios reveals fluctuations in its inventory turnover efficiency over the years. However, the lack of data on Days of Sales Outstanding and Number of Days of Payables limits a comprehensive assessment of the company's overall working capital management and operational efficiency.

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Long-term

For Par Pacific Holdings Inc, the fixed asset turnover ratio has shown a positive trend over the years, indicating the company's ability to generate sales from its fixed assets efficiently. The ratio increased from 2.42 in 2020 to 6.17 in 2022, showcasing a significant improvement in asset utilization. However, the data is not available for 2023 and 2024, which limits our ability to analyze the continued trend.

In terms of total asset turnover, the company's performance has also been favorable. The ratio increased steadily from 1.46 in 2020 to 2.23 in 2022, indicating that Par Pacific Holdings Inc has been effective in generating revenue relative to its total assets. Although there was a slight decrease in the ratio in 2023 and 2024 to 2.13 and 2.08, respectively, the overall trend still suggests efficient asset utilization.

Overall, both the fixed asset turnover and total asset turnover ratios reflect positively on Par Pacific Holdings Inc's ability to efficiently utilize its assets to drive sales growth and improve operational performance.