Par Pacific Holdings Inc (PARR)

The liquidity ratios of Par Pacific Holdings Inc, as reflected in the data provided, show a mixed performance over the years.

- The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has shown an improving trend from 0.72 in 2020 to 1.62 in 2024. This indicates that the company's liquidity position has strengthened over the years, with its current assets being more than sufficient to cover its current liabilities.

- The quick ratio, a more stringent measure of liquidity that excludes inventories from current assets, has shown fluctuations over the years, ranging from 0.08 in 2021 to 0.27 in 2022. The ratio of less than 1 in all years indicates that the company may have difficulty meeting its short-term obligations without relying on the sale of inventories.

- The cash ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents to cover current liabilities, has remained constant at 0.18 from 2022 to 2024. This suggests that the company has a limited ability to cover its short-term obligations solely with its cash holdings.

Overall, while the current ratio has shown improvement, the quick ratio and cash ratio indicate some limitations in Par Pacific Holdings Inc's ability to meet short-term financial obligations without relying on inventory sales or non-cash assets. It is important for the company to continue monitoring and managing its liquidity position to ensure financial stability and flexibility in the future.

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Additional liquidity measure

The cash conversion cycle of Par Pacific Holdings Inc has exhibited fluctuations over the years. As of December 31, 2020, the company's cash conversion cycle stood at 51.65 days, indicating that it took approximately 51.65 days for the company to convert its investments in inventory into cash receipts from sales.

By December 31, 2021, the cash conversion cycle increased to 65.08 days, suggesting a longer period for the company to convert its resources into cash. This increase may indicate potential inefficiencies in managing inventory, collecting receivables, or managing payables.

Subsequently, as of December 31, 2022, the cash conversion cycle decreased to 58.73 days, reflecting some improvement in the company's efficiency in converting its resources into cash.

However, by December 31, 2023, the cash conversion cycle lengthened again to 64.31 days, signaling a potential reversal of efficiency gains made in the previous year.

As of December 31, 2024, the cash conversion cycle improved to 54.97 days, showcasing a more efficient conversion of the company's investments in inventory into cash receipts.

Overall, the fluctuations in Par Pacific Holdings Inc's cash conversion cycle indicate varying efficiency levels in managing its working capital components over the years, with periods of improvement and potential areas for further optimization.