Par Pacific Holdings Inc (PARR)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	685,792	599,594	687,080	808,634	433,187	355,322	168,768	-90,801	-13,783	-151,631	-246,033	-181,730	-359,564	-193,168	-264,499	-190,995	45,948	17,460	90,393	70,965
Long-term debt	US$ in thousands	646,603	532,653	574,762	530,574	494,576	496,870	508,997	576,482	553,717	555,945	560,141	597,185	648,660	651,252	653,956	597,571	599,634	630,129	631,801	664,388
Total stockholders’ equity	US$ in thousands	1,335,420	1,071,260	919,311	887,993	644,537	546,892	278,729	125,917	265,700	253,502	169,692	276,067	246,274	379,940	392,476	430,388	648,242	579,510	659,563	611,202
Return on total capital		34.60%	37.38%	45.99%	57.00%	38.03%	34.04%	21.42%	-12.93%	-1.68%	-18.73%	-33.71%	-20.81%	-40.18%	-18.73%	-25.28%	-18.58%	3.68%	1.44%	7.00%	5.56%

December 31, 2023 calculation

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

Par Pacific Holdings Inc's return on total capital has shown fluctuating trends over the past eight quarters. The company experienced a significant improvement in Q1 2023, with a return on total capital of 36.62%, indicating efficient utilization of both debt and equity to generate profits. This was a notable increase from the previous quarter's 31.67%.

In contrast, the return on total capital was negative in Q1 2022, indicating that the company's capital investments did not yield a return during that period. However, there has been a consistent upward trend in the return on total capital from Q1 2022 to Q1 2023, reflecting potential improvement in the company's capital efficiency.

Overall, the return on total capital for Par Pacific Holdings Inc has been volatile, with fluctuations in profitability levels. It is important for the company to focus on sustaining and improving its return on total capital in order to enhance shareholder value and ensure long-term financial stability.