Par Pacific Holdings Inc (PARR)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands -33,322 728,642 364,189 -81,297 -409,086
Total stockholders’ equity US$ in thousands 1,191,300 1,335,420 644,537 265,700 246,274
ROE -2.80% 54.56% 56.50% -30.60% -166.11%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-33,322K ÷ $1,191,300K
= -2.80%

Par Pacific Holdings Inc's return on equity (ROE) experienced significant fluctuations over the past few years. The ROE was notably negative in 2020 at -166.11%, indicating that the company's net income was insufficient to cover shareholder equity, leading to a loss. The negative ROE improved in 2021 but remained below ideal levels at -30.60%.

However, there was a notable turnaround in 2022, with the ROE increasing to a strong 56.50%, indicating that the company generated substantial profits relative to shareholder equity. This positive trend continued in 2023, with ROE remaining high at 54.56%, demonstrating the company's ability to efficiently utilize shareholder funds to generate returns.

Despite the positive trend in the previous years, the ROE declined in 2024 to -2.80%, indicating a decrease in profitability compared to the previous year. This decline suggests that the company may have faced challenges in generating returns on equity during that period.

Overall, while Par Pacific Holdings Inc's ROE has shown improvement and strong performance in some years, investors should monitor the company's profitability and financial performance closely to assess its ability to generate sustainable returns for shareholders in the future.