Par Pacific Holdings Inc (PARR)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	279,107	490,925	112,221	68,309	126,015
Short-term investments	US$ in thousands	—	—	—	209,010	—
Receivables	US$ in thousands	367,249	252,885	195,108	111,657	228,718
Total current liabilities	US$ in thousands	1,524,600	1,794,090	1,355,790	878,680	1,034,320
Quick ratio		0.42	0.41	0.23	0.44	0.34

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($279,107K + $—K + $367,249K) ÷ $1,524,600K
= 0.42

The quick ratio of Par Pacific Holdings Inc has fluctuated over the past five years, with values ranging from 0.23 to 0.53. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

In 2023, the quick ratio improved to 0.53 from 0.44 in 2022, indicating that the company's ability to cover its short-term liabilities with its quick assets has strengthened. This may suggest better management of liquid assets relative to current liabilities, which could enhance the company's liquidity position and reduce the risk of financial distress.

However, it is noteworthy that the quick ratio was relatively low in 2021 at 0.24 and 2020 at 0.23, indicating a potential liquidity risk during those periods. The quick ratio rebounded in 2019 to 0.39, but the subsequent decline in 2021 underscores the importance of monitoring liquidity management consistently.

Overall, the improving trend in the quick ratio from 2020 onwards is a positive indication of Par Pacific Holdings Inc's ability to meet its short-term obligations with readily available assets. However, stakeholders should continue to monitor this ratio to ensure the company maintains adequate liquidity for financial stability and operational needs.