Par Pacific Holdings Inc (PARR)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	3,863,950	3,280,650	2,570,250	2,133,860	2,700,560
Total stockholders’ equity	US$ in thousands	1,335,420	644,537	265,700	246,274	648,242
Financial leverage ratio		2.89	5.09	9.67	8.66	4.17

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,863,950K ÷ $1,335,420K
= 2.89

The financial leverage ratio of Par Pacific Holdings Inc has exhibited fluctuations over the past five years, ranging from 2.89 in 2023 to 9.67 in 2021. A higher financial leverage ratio indicates a relatively higher level of debt in the company's capital structure compared to equity. The substantial increase in the ratio from 4.17 in 2019 to 9.67 in 2021 suggests a significant increase in reliance on debt financing during that period. This shift may have been driven by strategic decisions related to capital allocation or growth initiatives. The subsequent decrease in the ratio to 2.89 in 2023 indicates a reduction in the proportion of debt in the company's capital structure, which might imply a move towards a more balanced mix of debt and equity financing. It is essential for stakeholders to closely monitor changes in the financial leverage ratio as it can impact the company's financial stability, risk profile, and overall performance in the long run.