Par Pacific Holdings Inc (PARR)

Debt-to-assets ratio

		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
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 assets	US$ in thousands	3,863,950	3,888,750	3,609,970	3,327,430	3,280,650	3,107,100	3,245,340	2,920,440	2,570,250	2,521,000	2,524,380	2,502,470	2,133,860	2,272,410	2,224,800	2,140,920	2,700,560	2,652,880	2,672,410	2,648,100
Debt-to-assets ratio		0.17	0.14	0.16	0.16	0.15	0.16	0.16	0.20	0.22	0.22	0.22	0.24	0.30	0.29	0.29	0.28	0.22	0.24	0.24	0.25

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $646,603K ÷ $3,863,950K
= 0.17

The debt-to-assets ratio of Par Pacific Holdings Inc has shown a decreasing trend from Q4 2022 to Q4 2023, indicating an improvement in the company's financial leverage and risk management. The ratio decreased from 0.43 in Q4 2022 to 0.33 in Q4 2023, suggesting that the company has reduced its reliance on debt to finance its assets. This trend continued through Q1 and Q2 of 2023, with further reductions in the debt-to-assets ratio to 0.38 and 0.42, respectively.

The decreasing debt-to-assets ratio reflects a healthier balance sheet structure, as a lower ratio indicates a smaller proportion of the company's assets are financed by debt. This can enhance the company's financial stability and flexibility by reducing interest expenses and the risk of default. It also indicates improved financial health and potentially better access to capital at favorable rates.

Overall, the decreasing trend in Par Pacific Holdings Inc's debt-to-assets ratio signals effective financial management and a strengthened financial position, which may bode well for the company's long-term sustainability and growth prospects.