Par Pacific Holdings Inc (PARR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 9.30% | 15.48% | 11.55% | 5.89% | 2.79% |
| Operating profit margin | 0.60% | 8.26% | 5.98% | -0.16% | -10.18% |
| Pretax margin | -0.49% | 7.45% | 4.98% | -1.70% | -13.75% |
| Net profit margin | -0.42% | 8.85% | 4.97% | -1.73% | -13.09% |
Par Pacific Holdings Inc has shown a consistent improvement in its gross profit margin over the years, increasing from 2.79% in 2020 to 15.48% in 2023, before experiencing a slight decline to 9.30% in 2024. This indicates that the company has been able to effectively manage its cost of goods sold and generate higher profits from its operations.
The operating profit margin of Par Pacific Holdings Inc also exhibits an overall positive trend, with the company moving from negative margins in 2020 and 2021 to positive margins in subsequent years. The margin improved from -10.18% in 2020 to 8.26% in 2023, with a slight decrease to 0.60% in 2024. This suggests that the company has been able to control its operating expenses and improve operational efficiency.
Similarly, the pretax margin of the company has shown a consistent improvement over the period, with a significant increase from -13.75% in 2020 to 7.45% in 2023. However, there was a slight decline to -0.49% in 2024. This indicates that the company has been able to manage its pre-tax income effectively and generate higher earnings before taxes.
The net profit margin of Par Pacific Holdings Inc has also demonstrated a positive trajectory, moving from negative margins in 2020 and 2021 to positive margins in subsequent years. The margin improved from -13.09% in 2020 to 8.85% in 2023, before experiencing a small decline to -0.42% in 2024. This suggests that the company has been successful in controlling its expenses and increasing profitability after accounting for all costs.
Overall, the profitability ratios of Par Pacific Holdings Inc reflect a positive trend, indicating the company's ability to improve its profitability over time through effective cost management and operational efficiency.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.24% | 17.60% | 13.35% | -0.30% | -14.90% |
| Return on assets (ROA) | -0.87% | 18.86% | 11.10% | -3.16% | -19.17% |
| Return on total capital | 3.67% | 51.35% | 68.65% | -5.15% | -146.93% |
| Return on equity (ROE) | -2.80% | 54.56% | 56.50% | -30.60% | -166.11% |
Par Pacific Holdings Inc's profitability ratios have shown a mixed performance over the past five years.
1. Operating Return on Assets (Operating ROA):
- The company's Operating ROA was negative in 2020 and 2021, indicating that the company was not effectively generating profits from its operating assets.
- However, there was a significant improvement in 2022, with a positive Operating ROA of 13.35%, and a further increase to 17.60% in 2023, indicating efficient utilization of assets to generate operating profits.
- In 2024, the Operating ROA decreased to 1.24%, which suggests a slight decline in the company's ability to generate profits from its assets.
2. Return on Assets (ROA):
- Similar to Operating ROA, ROA was also negative in 2020 and 2021, indicating a lack of profitability relative to the total assets.
- There was a notable improvement in 2022 and 2023, with ROA reaching 11.10% and 18.86% respectively, indicating a better utilization of assets to generate profits.
- However, in 2024, ROA dipped to -0.87%, signaling a decline in profitability relative to the total assets.
3. Return on Total Capital:
- The Return on Total Capital was severely negative in 2020, but showed improvement in the subsequent years.
- In 2022, the company achieved a significant increase in Return on Total Capital to 68.65%, indicating efficient use of total capital to generate profits.
- The ratio remained relatively high in 2023 at 51.35%, indicating continued effectiveness in capital utilization.
- However, in 2024, there was a decrease to 3.67%, which may suggest a decline in the company's ability to generate returns on its total capital.
4. Return on Equity (ROE):
- ROE was also deeply negative in 2020, improved in 2021, and showed positive results in 2022 and 2023, indicating better returns to the equity holders.
- The ROE decreased to -2.80% in 2024, which may indicate a decrease in profitability relative to shareholders' equity.
Overall, the company has shown some improvement in profitability ratios in 2022 and 2023, but there were declines in 2024, suggesting fluctuations in the company's ability to generate profits and returns for its stakeholders over the years.