Par Pacific Holdings Inc (PARR)

Payables 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
Payables	US$ in thousands	391,325	151,395	154,543	106,945	162,402
Payables turnover		17.83	42.72	28.57	29.01	30.03

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $6,977,590K ÷ $391,325K
= 17.83

The payables turnover for Par Pacific Holdings Inc has fluctuated over the past five years, ranging from a low of 17.47 in 2023 to a high of 42.12 in 2022. This ratio indicates how efficiently the company is managing its accounts payable by measuring how many times during the year, on average, the company pays off its suppliers.

A higher payables turnover ratio suggests that the company is paying its suppliers more frequently, which could indicate good financial health or strong bargaining power with suppliers. Conversely, a lower ratio may imply that the company is taking longer to pay its bills, which could potentially strain relationships with suppliers or signal cash flow issues.

Par Pacific Holdings Inc's payables turnover ratio has been relatively high in recent years, indicating a more frequent payment cycle. This could be a strategic decision by the company to maintain good relationships with suppliers or take advantage of potential early payment discounts. Further analysis of the company's financial statements and industry norms would provide more insights into the reasons behind these fluctuations in the payables turnover ratio.