Par Pacific Holdings Inc (PARR)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	191,921	279,107	490,925	112,221	68,309
Short-term investments	US$ in thousands	—	—	—	—	209,010
Total current liabilities	US$ in thousands	1,096,270	1,524,600	1,794,090	1,355,790	878,680
Cash ratio		0.18	0.18	0.27	0.08	0.32

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($191,921K + $—K) ÷ $1,096,270K
= 0.18

The cash ratio of Par Pacific Holdings Inc has shown fluctuations over the years. As of December 31, 2020, the cash ratio was 0.32, indicating that the company had $0.32 in cash and cash equivalents for every dollar of current liabilities. However, by December 31, 2021, the cash ratio decreased to 0.08, suggesting a deterioration in the company's ability to cover its short-term obligations with its available cash.

Subsequently, as of December 31, 2022, the cash ratio improved to 0.27, signaling a better liquidity position compared to the previous year. This improvement was not sustained, as the cash ratio decreased to 0.18 by December 31, 2023, indicating a slight decline in the company's ability to cover its current liabilities with its cash reserves.

The cash ratio remained constant at 0.18 as of December 31, 2024. Overall, while there have been fluctuations in the cash ratio over the years, it is essential for Par Pacific Holdings Inc to carefully manage its liquidity to ensure it can meet its short-term obligations efficiently.