Par Pacific Holdings Inc (PARR)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	7,510,490	7,904,330	8,208,830	7,853,130	7,233,120	6,725,600	6,183,650	6,415,140	6,475,790	6,054,380	5,508,670	4,895,010	4,432,723	3,989,356	3,475,426	2,717,982	3,037,729	3,549,286	4,229,156	5,039,510
Inventory	US$ in thousands	1,089,320	1,071,920	1,258,340	1,133,070	1,225,930	1,227,330	1,241,490	929,574	1,041,980	914,622	1,160,170	1,027,130	790,317	635,319	624,153	579,206	429,855	493,569	427,679	319,540
Inventory turnover		6.89	7.37	6.52	6.93	5.90	5.48	4.98	6.90	6.21	6.62	4.75	4.77	5.61	6.28	5.57	4.69	7.07	7.19	9.89	15.77

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,510,490K ÷ $1,089,320K
= 6.89

Inventory turnover ratio is a financial metric that measures how many times a company's inventory is sold and replaced over a specific period. A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently.

By analyzing the inventory turnover data provided for Par Pacific Holdings Inc from March 31, 2020, to December 31, 2024, we can observe fluctuations in the ratio. The inventory turnover ratio started at 15.77 on March 31, 2020, which means the company turned over its inventory nearly 16 times during that period.

Over the subsequent quarters, we see a general decreasing trend in the inventory turnover ratio, indicating that the company's inventory turnover slowed down. The ratio decreased to 4.69 by March 31, 2021. This decline may suggest issues such as overstocking, slow sales, or poor inventory management.

There were some fluctuations in the ratio between June 30, 2021, and March 31, 2024, with the ratio ranging from 4.75 to 7.37. These fluctuations could be due to changes in demand, seasonal factors, or operational inefficiencies.

Overall, the inventory turnover ratio for Par Pacific Holdings Inc indicates varying degrees of efficiency in managing and selling its inventory over the period. It is essential for the company to closely monitor and optimize its inventory levels to ensure efficient operations and healthy financial performance.