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.