Par Pacific Holdings Inc (PARR)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	3,829,370	3,863,950	3,280,650	2,570,250	2,133,860
Operating ROA		1.24%	17.60%	13.35%	-0.30%	-14.90%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $47,628K ÷ $3,829,370K
= 1.24%

The operating return on assets (operating ROA) for Par Pacific Holdings Inc has shown significant fluctuations over the past few years.

As of December 31, 2020, the operating ROA was -14.90%, indicating that the company was experiencing a loss on its operating activities relative to its asset base. This negative return suggests that the company may have been struggling to effectively generate profits from its assets during that period.

By the end of December 31, 2021, the operating ROA had improved to -0.30%, but still remained in negative territory, although to a lesser extent compared to the previous year. This improvement may signal some progress in the company's operational efficiency and profitability.

In December 31, 2022, there was a notable turnaround, with the operating ROA jumping to 13.35%. This significant positive return indicates that the company was able to generate a healthy operating profit relative to its assets, reflecting improved operational performance and efficiency.

The positive trend continued into December 31, 2023, with the operating ROA further increasing to 17.60%. This steep rise suggests continued operational improvements and a more effective utilization of assets to drive profitability.

However, by December 31, 2024, the operating ROA dropped to 1.24%, signifying a decrease in the company's operating efficiency and profitability compared to the previous year. This decline may indicate challenges or changes in the company's operations that impacted its ability to generate returns from its assets.

In conclusion, the operating return on assets for Par Pacific Holdings Inc has displayed a mix of negative and positive performance over the years, with notable improvements in profitability from 2022 to 2023, followed by a decrease in 2024. It is essential for the company to continue monitoring and managing its operational efficiency and asset utilization to sustain and enhance profitability in the future.