Par Pacific Holdings Inc (PARR)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 646,603 | 494,576 | 553,717 | 648,660 | 599,634 |
| Total stockholders’ equity | US$ in thousands | 1,335,420 | 644,537 | 265,700 | 246,274 | 648,242 |
| Debt-to-capital ratio | 0.33 | 0.43 | 0.68 | 0.72 | 0.48 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $646,603K ÷ ($646,603K + $1,335,420K)
= 0.33
The debt-to-capital ratio of Par Pacific Holdings Inc has shown a decreasing trend from 2019 to 2023. The ratio decreased from 0.66 in 2019 to 0.49 in 2023, indicating a lower reliance on debt compared to total capital over the years.
A debt-to-capital ratio of 0.49 in 2023 suggests that 49% of the company's capital structure is financed by debt, while the remaining 51% is funded by equity. This indicates a relatively moderate level of debt compared to the company's total capital.
The decreasing trend in the debt-to-capital ratio may imply that the company is managing its debt levels effectively or opting for alternative financing sources. It's important to monitor this trend to assess the company's financial stability and risk profile, as a lower debt-to-capital ratio typically signifies lower financial risk and increased financial flexibility.
Peer comparison
Dec 31, 2023