Par Pacific Holdings Inc (PARR)

Liquidity ratios

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
Current ratio 1.30 1.12 1.07 1.24 1.05 1.01 0.88 0.80 0.83 0.81 0.75 0.82 0.72 0.86 0.89 0.84 1.00 0.98 0.98 0.96
Quick ratio 0.42 0.45 0.34 0.60 0.41 0.40 0.26 0.21 0.23 0.31 0.28 0.49 0.44 0.28 0.32 0.35 0.34 0.33 0.37 0.34
Cash ratio 0.18 0.18 0.11 0.42 0.27 0.24 0.09 0.08 0.08 0.16 0.13 0.36 0.32 0.15 0.18 0.09 0.12 0.11 0.11 0.06

The liquidity ratios of Par Pacific Holdings Inc indicate the company's ability to meet its short-term obligations and manage its current assets effectively.

The current ratio has displayed some fluctuations over the past eight quarters but generally remained above the ideal threshold of 1, suggesting that the company has had an adequate level of current assets to cover its current liabilities. The ratio improved in Q4 2023, reaching 1.30, compared to 1.12 in Q3 2023 and 1.24 in Q1 2023. However, the ratio was relatively weaker in Q2 2023 at 1.07.

The quick ratio, which excludes inventory from current assets, provides a more stringent measure of liquidity. Par Pacific Holdings Inc's quick ratio has also shown variability, with Q4 2023 standing at 0.53, an improvement from the previous quarter. Despite the improvement, the quick ratio has generally been below 1 over the past quarters, indicating potential challenges in meeting immediate obligations without relying on selling inventory.

The cash ratio, which is the most conservative liquidity measure, reached 0.29 in Q4 2023, also showing an improvement from the previous quarter. However, the ratio has been fluctuating, with the lowest point recorded in Q2 2023 at 0.12.

Overall, while the current ratio has generally been above 1, indicating a reasonable ability to meet short-term obligations, the quick and cash ratios suggest a tighter liquidity position for Par Pacific Holdings Inc. Monitoring and further improvement in these ratios would be beneficial to enhance the company's short-term financial stability and mitigate liquidity risks.

Additional liquidity measure

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
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

The cash conversion cycle measures the time taken by Par Pacific Holdings Inc to convert its investments in inventory into cash flows from sales. A lower number indicates an efficient use of working capital.

Looking at the data provided, the cash conversion cycle for Par Pacific Holdings Inc fluctuated over the past quarters. In Q4 2023, the company's cash conversion cycle was 57.33 days, showing an improvement from the previous quarter's 63.55 days. This implies that the company was relatively efficient in managing its working capital during the period.

Comparing this data to the same quarter in the previous year, Q4 2022 had a similar cash conversion cycle of 63.59 days, indicating a consistent performance across years. However, a significant improvement can be noted when comparing the current quarter to Q2 2022, where the cash conversion cycle was at its highest at 83.67 days.

Overall, Par Pacific Holdings Inc has shown fluctuations in its cash conversion cycle over the past quarters. It is important for the company to continue monitoring and managing its working capital effectively to ensure smooth operations and financial stability.