Par Pacific Holdings Inc (PARR)

Cash conversion cycle

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
Days of inventory on hand (DOH) days 60.70 66.44 73.13 52.89 58.80 55.24 77.05 76.81 65.32 58.17 65.64 77.91 50.57 50.04 36.46 22.90 58.92 94.56 158.02 2,514.61
Days of sales outstanding (DSO) days 16.40 24.67 20.15 13.33 12.71 15.57 22.56 16.82 15.34 17.45 22.20 20.63 13.27 11.33 9.36 13.07 15.62 17.58 21.42 25.42
Number of days of payables days 20.47 28.15 20.70 10.70 8.54 12.12 16.65 23.78 12.77 14.99 16.80 18.37 12.58 13.00 9.49 6.92 15.54 20.04 40.27 449.21
Cash conversion cycle days 56.63 62.97 72.59 55.52 62.96 58.69 82.97 69.85 67.89 60.64 71.05 80.17 51.26 48.37 36.32 29.05 59.01 92.10 139.16 2,090.81

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 60.70 + 16.40 – 20.47
= 56.63

The cash conversion cycle of Par Pacific Holdings Inc has varied over the past eight quarters. In Q2 2022, the company experienced the highest cash conversion cycle of 83.67 days, indicating a longer period to convert its investments in inventory and accounts receivable into cash. This was followed by a decrease in Q3 2022 to 59.19 days.

However, in Q4 2022, the cash conversion cycle increased to 63.59 days, showing a longer cycle compared to the previous quarter. The trend continued into Q1 2023 with a slightly higher cycle of 56.10 days.

Interestingly, the cash conversion cycle increased significantly in Q2 2023 to 73.44 days, marking the highest cycle since Q2 2022. This was followed by a decrease in Q3 2023 to 63.55 days, but the cycle remained relatively high compared to the previous quarters.

Finally, in Q4 2023, the cash conversion cycle decreased further to 57.33 days, showing an improvement in the company's ability to convert its investments in inventory and accounts receivable into cash more efficiently.

Overall, fluctuations in the cash conversion cycle suggest changes in the company's management of working capital and efficiency in generating cash from operations. It is important for Par Pacific Holdings Inc to closely monitor its cash conversion cycle to optimize its cash flows and improve overall financial performance.