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.
Peer comparison
Dec 31, 2023