Par Pacific Holdings Inc (PARR)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 34,481 | 253,714 | 418,441 | 455,812 | 753,759 | 715,728 | 823,115 | 940,524 | 541,551 | 460,524 | 272,976 | 12,501 | 23,562 | -98,324 | -193,689 | -137,497 | -187,604 | -38,938 | -109,251 | -30,571 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,191,300 | 1,254,030 | 1,265,780 | 1,311,340 | 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 |
| Return on total capital | 2.89% | 20.23% | 33.06% | 34.76% | 56.44% | 66.81% | 89.54% | 105.92% | 84.02% | 84.21% | 97.94% | 9.93% | 8.87% | -38.79% | -114.14% | -49.81% | -76.18% | -10.25% | -27.84% | -7.10% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $34,481K ÷ ($—K + $1,191,300K)
= 2.89%
Based on the provided data, the return on total capital for Par Pacific Holdings Inc has shown significant fluctuations over the past few years. The company had negative return on total capital figures ranging from -114.14% to -7.10% in the earlier periods, indicating inefficiency in utilizing its total capital to generate profits.
However, there has been a positive turnaround in the recent quarters, with the return on total capital improving to 89.54% in June 30, 2023, and further increasing to a peak of 105.92% in March 31, 2023. These positive values signify an effective allocation of capital leading to higher profitability for the company.
Despite this significant improvement, there was a slight decrease in the return on total capital in the subsequent periods, with figures ranging from 56.44% to 2.89% in the most recent quarter, December 31, 2024. This slight decline could be attributed to various factors such as changes in the economic environment, company investments, or operational issues.
Overall, the recent positive trend in return on total capital indicates that Par Pacific Holdings Inc has been able to enhance its capital utilization efficiency and generate higher returns for its investors. However, it would be essential for the company to maintain this positive momentum and continue optimizing its capital allocation strategies to sustain and further improve its financial performance in the future.
Peer comparison
Dec 31, 2024