Par Pacific Holdings Inc (PARR)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	47,628	680,006	437,903	-7,619	-317,998
Revenue	US$ in thousands	7,974,460	8,231,960	7,321,780	4,710,090	3,124,870
Operating profit margin		0.60%	8.26%	5.98%	-0.16%	-10.18%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $47,628K ÷ $7,974,460K
= 0.60%

The operating profit margin of Par Pacific Holdings Inc has shown a fluctuating trend over the past five years. In December 31, 2020, the company reported a negative operating profit margin of -10.18%, indicating that its operating expenses exceeded its operating income significantly. However, there was a notable improvement in December 31, 2021, with the operating profit margin improving to -0.16%, although it remained negative.

In the following years, Par Pacific Holdings Inc demonstrated positive progress in its operating profit margin. By December 31, 2022, the margin had increased to 5.98%, signaling better management of operating expenses and enhanced profitability. This positive trend continued in December 31, 2023, with a further increase in the operating profit margin to 8.26%, reflecting improved efficiency in generating operating income relative to revenue.

However, in December 31, 2024, there was a slight decline in the operating profit margin to 0.60%. This decrease may indicate potential challenges or higher operating expenses during that period that impacted the company's profitability.

Overall, the recent years have shown a positive trajectory in Par Pacific Holdings Inc's operating profit margin, suggesting improved operational efficiency and performance. It will be essential for the company to sustain this positive momentum and closely monitor its operating expenses to ensure continued profitability in the future.