Par Pacific Holdings Inc (PARR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.21 | 2.89 | 5.09 | 9.67 | 8.66 |
Based on the provided data, Par Pacific Holdings Inc shows a strong solvency position over the years, as indicated by its debt-related ratios.
The debt-to-assets ratio, which measures the proportion of a company's assets financed by debt, is consistently at 0.00 from 2020 to 2024. This suggests that the company has no debt relative to its total assets during this period.
Similarly, the debt-to-capital and debt-to-equity ratios also remain at 0.00 throughout the years 2020 to 2024. These ratios indicate the extent to which a company is using debt financing in relation to its capital or equity, respectively. The steady 0.00 ratio signifies that Par Pacific Holdings Inc is not relying on debt to fund its operations and investments, providing a strong indication of financial stability.
Furthermore, the financial leverage ratio, which gives an insight into the company's financial risk and capital structure, shows a decreasing trend from 8.66 in 2020 to 3.21 in 2024. This decline indicates a reduction in financial risk and dependency on debt as a source of funding over the years.
Overall, the consistent 0.00 debt-related ratios and the decreasing trend in the financial leverage ratio suggest that Par Pacific Holdings Inc has a solid financial foundation and is managing its debt levels prudently, which contributes to its overall solvency and financial health.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.53 | 9.47 | 6.48 | -0.21 | -5.15 |
The interest coverage ratio for Par Pacific Holdings Inc has shown a fluctuating trend over the years. As of December 31, 2020, the ratio stood at -5.15, indicating that the company's operating income was insufficient to cover its interest expenses. The situation worsened by December 31, 2021, with the interest coverage ratio decreasing to -0.21, signaling a high risk of default on interest payments.
However, there was a significant improvement in the company's financial health by December 31, 2022, as the interest coverage ratio increased to 6.48. This suggests that the company's operating income was more than sufficient to cover its interest obligations. By December 31, 2023, the ratio improved further to 9.47, reflecting a strong ability to meet interest payments comfortably.
Unfortunately, there was a setback by December 31, 2024, as the interest coverage ratio dropped to 0.53. This indicates a potential strain on the company's financial resources to cover its interest expenses. Overall, while the company has shown improvements in its interest coverage over the years, the recent decline raises some concerns about its ability to service its debt obligations.