Par Pacific Holdings Inc (PARR)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	7,232,740	6,957,940	6,475,780	4,432,720	3,037,730
Inventory	US$ in thousands	1,089,320	1,225,930	1,041,980	790,317	429,855
Inventory turnover		6.64	5.68	6.21	5.61	7.07

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $7,232,740K ÷ $1,089,320K
= 6.64

Based on the provided data, the inventory turnover for Par Pacific Holdings Inc has fluctuated over the past five years. In December 31, 2020, the inventory turnover ratio was relatively high at 7.07 times, indicating that the company was able to sell and replenish its inventory multiple times throughout the year.

However, there was a decrease in inventory turnover to 5.61 times by December 31, 2021, suggesting that the company was either holding more inventory on hand or experiencing slower sales during that period.

In the following years, the inventory turnover ratio showed some improvement, reaching 6.21 in December 31, 2022, dropping slightly to 5.68 in December 31, 2023, and then increasing to 6.64 by December 31, 2024. These fluctuations could be due to changes in the company's sales volume, inventory management practices, or market conditions.

Overall, while the company's inventory turnover has shown variability, it is essential for Par Pacific Holdings Inc to continue monitoring and optimizing its inventory turnover ratio to ensure efficient management of its inventory levels and working capital.