Par Pacific Holdings Inc (PARR)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	728,642	364,189	-81,297	-409,086	40,809
Total assets	US$ in thousands	3,863,950	3,280,650	2,570,250	2,133,860	2,700,560
ROA		18.86%	11.10%	-3.16%	-19.17%	1.51%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $728,642K ÷ $3,863,950K
= 18.86%

Par Pacific Holdings Inc's return on assets (ROA) has shown a fluctuating trend over the past five years. The ROA was positive and relatively high in 2019 at 1.51%. It then significantly increased in 2020 to -19.17%, indicating a sharp decline in profitability relative to its assets. This negative ROA in 2020 may suggest inefficiencies or challenges faced by the company during that period.

However, there was a notable turnaround in 2021, with the ROA improving to -3.16%, although it remained negative. The positive improvement in profitability relative to assets in 2021 could signify management efforts to enhance operational efficiency and profitability.

The most recent data for 2022 and 2023 indicate a significant improvement in ROA, with figures of 11.10% and 18.86% respectively. These positive ROA percentages reflect an improved ability of Par Pacific Holdings Inc to generate profit from its assets. The upward trend in ROA over the past two years may suggest a more effective utilization of resources and a stronger financial performance.

Overall, while the company experienced challenges in the past, the recent increase in ROA signifies a positive shift towards profitability and efficiency in utilizing its assets. Monitoring this ratio in the future will be crucial to assess the company's continued financial performance and effectiveness in generating returns from its asset base.