Par Pacific Holdings Inc (PARR)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 54.97 | 64.31 | 58.73 | 65.08 | 51.65 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 54.97 | 64.31 | 58.73 | 65.08 | 51.65 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 54.97 + — – —
= 54.97
The cash conversion cycle for Par Pacific Holdings Inc has shown some fluctuations over the past five years.
In 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 from sales. This suggests efficient management of working capital during that period.
However, in 2021, the cash conversion cycle increased to 65.08 days, signifying a longer time taken to convert inventory into cash. This might indicate possible issues with inventory management or sales conversion efficiency.
The following year, in 2022, there was a slight improvement in the cash conversion cycle to 58.73 days, showing some effort to expedite the conversion process compared to the previous year.
By the end of 2023, the cash conversion cycle increased again to 64.31 days, suggesting a slower conversion of investments in inventory to cash flows from sales, potentially impacting the company's liquidity position.
In 2024, there was a decrease in the cash conversion cycle to 54.97 days, indicating a more efficient management of working capital and smoother conversion of inventory to cash, which could positively impact the company's cash flow and operational efficiency.
Overall, the fluctuations in Par Pacific Holdings Inc's cash conversion cycle over the five-year period reflect varying levels of efficiency in managing working capital and converting investments in inventory into cash flows, highlighting the importance of continuous monitoring and improvement in cash flow management practices.
Peer comparison
Dec 31, 2024