Par Pacific Holdings Inc (PARR)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	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	648,242	579,510	659,563	611,202
Debt-to-capital ratio		0.33	0.33	0.38	0.37	0.43	0.48	0.65	0.82	0.68	0.69	0.77	0.68	0.72	0.63	0.62	0.58	0.48	0.52	0.49	0.52

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 been fluctuating over the past eight quarters, with a downward trend in recent periods. In Q1 2022, the ratio was high at 0.93, indicating that a larger portion of the company's capital structure was composed of debt. However, this ratio has shown a gradual decline since then, reaching 0.49 in Q4 2023.

A lower debt-to-capital ratio suggests that the company is relying less on debt to finance its operations and investments, which can be viewed positively as it reduces the company's financial risk. The decreasing trend in the ratio indicates that Par Pacific Holdings Inc may be improving its capital structure by reducing debt levels relative to total capital.

Overall, the declining trend in the debt-to-capital ratio of Par Pacific Holdings Inc over the observed period suggests a potential strengthening of the company's financial position and a more balanced use of debt and equity financing. However, it would be important to continue monitoring this ratio in future periods to assess the company's ongoing capital management strategies.