Par Pacific Holdings Inc (PARR)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	685,792	433,187	-13,783	-359,564	45,948
Long-term debt	US$ in thousands	646,603	494,576	553,717	648,660	599,634
Total stockholders’ equity	US$ in thousands	1,335,420	644,537	265,700	246,274	648,242
Return on total capital		34.60%	38.03%	-1.68%	-40.18%	3.68%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $685,792K ÷ ($646,603K + $1,335,420K)
= 34.60%

The return on total capital for Par Pacific Holdings Inc has shown a positive trend over the past five years. The ratio increased from 3.27% in 2019 to 28.30% in 2023, indicating a significant improvement in the company's ability to generate returns from its total capital employed. This suggests that the company has become more efficient in utilizing its capital to generate profits for its shareholders. The negative returns in 2020 and 2021 may indicate some challenges or inefficiencies during those years, but the company was able to turn the situation around and achieve strong returns in the following years. Overall, the increasing trend in return on total capital reflects positively on the company's financial performance and management's effectiveness in utilizing its capital resources.