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.