Par Pacific Holdings Inc (PARR)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	685,792	599,594	687,080	808,634	433,187	355,322	168,768	-90,801	-13,783	-151,631	-246,033	-181,730	-359,564	-193,168	-264,499	-190,995	45,948	17,460	90,393	70,965
Interest expense (ttm)	US$ in thousands	72,450	68,862	64,899	68,144	68,288	67,182	65,704	64,736	66,493	68,322	70,471	69,699	70,222	70,114	70,939	74,803	74,839	67,758	59,835	50,101
Interest coverage		9.47	8.71	10.59	11.87	6.34	5.29	2.57	-1.40	-0.21	-2.22	-3.49	-2.61	-5.12	-2.76	-3.73	-2.55	0.61	0.26	1.51	1.42

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $685,792K ÷ $72,450K
= 9.47

The interest coverage ratio of Par Pacific Holdings Inc has shown a generally positive trend over the past eight quarters. The ratio has consistently been above 1, indicating that the company is able to cover its interest expenses with its operating income.

In the most recent quarter (Q4 2023), the interest coverage ratio was 10.13, which was higher compared to the previous quarter at 9.37. This suggests that the company's ability to meet its interest obligations improved during this period.

Looking back further, it is evident that the interest coverage ratio has significantly improved from negative values in Q1 2022 to double-digit positive values in Q4 2023. This indicates that Par Pacific Holdings Inc has strengthened its financial position and is better equipped to handle its interest payments.

Overall, the trend in the interest coverage ratio reflects a positive development in the company's ability to service its debt and indicates improved financial stability.