Par Pacific Holdings Inc (PARR)

Cash ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	279,107	347,105	190,951	661,316	490,925	409,090	186,178	140,874	112,221	201,305	174,329	214,733	68,309	127,333	142,869	62,080	126,015	110,688	106,190	60,297
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	209,010	209,010	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	1,524,600	1,939,590	1,769,950	1,572,360	1,794,090	1,721,680	2,109,940	1,828,620	1,355,790	1,295,240	1,369,690	1,190,670	878,680	875,703	806,570	727,875	1,034,320	1,051,600	974,193	948,072
Cash ratio		0.18	0.18	0.11	0.42	0.27	0.24	0.09	0.08	0.08	0.16	0.13	0.36	0.32	0.15	0.18	0.09	0.12	0.11	0.11	0.06

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($279,107K + $—K) ÷ $1,524,600K
= 0.18

The cash ratio of Par Pacific Holdings Inc has shown fluctuations over the past eight quarters. The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a greater ability to cover short-term obligations.

In Q1 2023, the cash ratio was at its highest point of 0.46, indicating that the company had a strong ability to cover its short-term liabilities with cash. This was followed by a significant decrease in Q2 2023 to 0.12, signifying a lower level of liquidity. The cash ratio then increased in Q3 2023 to 0.20, showing some improvement in liquidity.

However, in Q4 2023, the cash ratio decreased to 0.29, still below the peak reached in Q1 2023. Overall, the company's cash ratio has varied throughout the quarters, displaying periods of stronger and weaker liquidity positions. It is important for the company to maintain a healthy level of liquidity to ensure it can meet its short-term obligations effectively.