Par Pacific Holdings Inc (PARR)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	6,977,590	6,742,640	6,196,090	6,415,370	6,468,060	6,043,250	5,495,800	4,880,730	4,415,885	3,986,473	3,470,522	2,713,562	3,102,357	3,599,909	4,281,970	5,092,370	3,815,068	2,592,988	1,325,603	72,506
Payables	US$ in thousands	391,325	519,933	351,320	188,086	151,395	200,647	250,689	318,024	154,543	163,666	159,692	136,567	106,945	128,251	111,309	96,561	162,402	142,399	146,264	89,235
Payables turnover		17.83	12.97	17.64	34.11	42.72	30.12	21.92	15.35	28.57	24.36	21.73	19.87	29.01	28.07	38.47	52.74	23.49	18.21	9.06	0.81

December 31, 2023 calculation

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

The payables turnover of Par Pacific Holdings Inc has exhibited fluctuations over the past eight quarters. The trend indicates that the company is taking longer or shorter periods to pay off its short-term liabilities to suppliers and vendors.

In Q4 2023, the payables turnover ratio was 17.47, which suggests that the company paid off its accounts payable approximately 17.47 times during that quarter. This represents an improvement from the previous quarter, where the ratio was 12.72.

The payables turnover ratio was relatively stable in Q2 2023, but then increased significantly in Q1 2023 to 33.57, indicating a more efficient management of payables during that period.

Looking back at Q4 2022, the highest payables turnover ratio of 42.12 was observed, indicating that the company was managing its payables effectively at that time. However, the ratio decreased in subsequent quarters before showing an improvement in Q1 2023.

Overall, a higher payables turnover ratio suggests that the company is efficiently managing its accounts payable by paying them off more frequently, which could indicate strong liquidity or good relationships with suppliers. Conversely, a lower ratio may imply that the company is taking longer to pay its suppliers, potentially signaling liquidity challenges or strained relationships.

It is important for Par Pacific Holdings Inc to monitor its payables turnover ratio consistently to ensure efficient management of working capital and maintain positive relationships with its suppliers.