Par Pacific Holdings Inc (PARR)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 7,974,460 8,231,960 7,321,780 4,710,090 3,124,870
Total current assets US$ in thousands 1,772,240 1,989,500 1,881,840 1,130,170 636,469
Total current liabilities US$ in thousands 1,096,270 1,524,600 1,794,090 1,355,790 878,680
Working capital turnover 11.80 17.71 83.44 — —

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,974,460K ÷ ($1,772,240K – $1,096,270K)
= 11.80

Working capital turnover is a financial ratio that measures a company's efficiency in managing its working capital to generate sales revenue. A higher working capital turnover indicates that the company is effectively utilizing its working capital to generate sales.

Looking at the data provided for Par Pacific Holdings Inc, we observe fluctuations in the working capital turnover ratio over the years. In 2022, the working capital turnover was 83.44, which may indicate that the company efficiently converted its working capital into sales revenue. However, in subsequent years, the ratio decreased significantly to 17.71 in 2023 and further to 11.80 in 2024.

The significant decrease in the working capital turnover ratio in 2023 and 2024 suggests that Par Pacific Holdings Inc may be facing challenges in efficiently utilizing its working capital to generate sales. It is essential for the company to closely monitor its working capital management to improve efficiency and ensure optimal utilization of resources.

Overall, analyzing the working capital turnover ratio highlights the importance of effective working capital management in driving operational performance and generating sales for Par Pacific Holdings Inc.