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.
Peer comparison
Dec 31, 2023