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.
Peer comparison
Dec 31, 2023