Par Pacific Holdings Inc (PARR)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,335,420	644,537	265,700	246,274	648,242
ROE		54.56%	56.50%	-30.60%	-166.11%	6.30%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $728,642K ÷ $1,335,420K
= 54.56%

The return on equity (ROE) for Par Pacific Holdings Inc has been quite volatile over the past five years. In 2019, the ROE was a modest 6.30%, indicating that the company generated a reasonable return for its shareholders. However, in 2020, the ROE dropped significantly to -166.11%, which suggests that the company incurred significant losses relative to its equity. This dramatic negative ROE in 2020 is a cause for concern and warrants further investigation into the factors that led to such a substantial decline.

In 2021, there was a slight improvement in the ROE, although it remained negative at -30.60%. This indicates that the company's profitability was still below par compared to its equity levels. However, there was a significant turnaround in 2022, with the ROE jumping to 56.50%, reflecting a strong performance and a substantial improvement in profitability.

By the end of 2023, Par Pacific Holdings Inc achieved an ROE of 54.56%, showing a slight decrease from the previous year but still at a relatively high level. This suggests that the company continues to generate healthy returns for its shareholders, although it is slightly lower compared to the previous year.

Overall, the company's ROE has been on a rollercoaster ride in recent years, with significant fluctuations. While the negative ROE in 2020 raises concerns, the subsequent improvement in profitability in 2022 and 2023 indicates that the company has made progress in enhancing its return on equity. Continued monitoring of the company's financial performance and profitability drivers will be crucial to assess its long-term sustainability and growth prospects.