Par Pacific Holdings Inc (PARR)

Debt-to-equity 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-equity ratio		0.48	0.77	2.08	2.63	0.93

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $646,603K ÷ $1,335,420K
= 0.48

Analyzing Par Pacific Holdings Inc's debt-to-equity ratio over the past five years reveals a fluctuating trend. The ratio decreased significantly from 4.93 in 2021 to 0.94 in 2023, indicating a significant reduction in the company's debt relative to equity during this period. This improvement suggests that the company may have paid down debt, raised additional equity, or a combination of both.

However, it's worth noting that the ratio was relatively high in 2021 and 2020 at 4.93 and 4.63, respectively, indicating a higher level of debt compared to equity during those years. This high ratio may have indicated potential financial risk due to excessive debt levels relative to equity, potentially impacting the company's financial stability and flexibility.

In contrast, the ratios in 2023 and 2019 were lower at 0.94 and 1.97, respectively, suggesting a more balanced mix of debt and equity in the company's capital structure during those periods.

Overall, the decreasing trend in the debt-to-equity ratio from 2021 to 2023 signals an improvement in the company's financial leverage and indicates a potentially more sustainable capital structure. However, ongoing monitoring of this ratio will be crucial to assess the company's ability to manage its debt levels effectively and maintain a healthy balance between debt and equity.