Par Pacific Holdings Inc (PARR)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	6,977,590	6,468,060	4,415,880	3,102,360	4,876,320
Inventory	US$ in thousands	1,160,400	1,041,980	790,317	429,855	615,872
Inventory turnover		6.01	6.21	5.59	7.22	7.92

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $6,977,590K ÷ $1,160,400K
= 6.01

The inventory turnover ratio for Par Pacific Holdings Inc has shown a fluctuating trend over the past five years, ranging from 5.49 to 7.80 times. The ratio indicates how efficiently the company is managing its inventory by measuring how many times the inventory is sold and replaced within a given period.

A higher inventory turnover ratio is generally favorable as it signifies that the company is selling its products quickly and efficiently, minimizing the risk of obsolete inventory. In contrast, a lower ratio may indicate overstocking or slow-moving inventory, leading to potential higher holding costs or write-downs.

In the recent year ending December 31, 2023, the inventory turnover ratio stood at 5.89, slightly lower than the previous year but still within a reasonable range. This suggests that the company may have slightly decreased its efficiency in managing inventory turnover compared to the prior year. Further analysis and comparison with industry benchmarks could provide additional insights into the company's inventory management performance.