Par Pacific Holdings Inc (PARR)

Solvency ratios

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
Debt-to-assets ratio 0.17 0.14 0.16 0.16 0.15 0.16 0.16 0.20 0.22 0.22 0.22 0.24 0.30 0.29 0.29 0.28 0.22 0.24 0.24 0.25
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
Debt-to-equity ratio 0.48 0.50 0.63 0.60 0.77 0.91 1.83 4.58 2.08 2.19 3.30 2.16 2.63 1.71 1.67 1.39 0.93 1.09 0.96 1.09
Financial leverage ratio 2.89 3.63 3.93 3.75 5.09 5.68 11.64 23.19 9.67 9.94 14.88 9.06 8.66 5.98 5.67 4.97 4.17 4.58 4.05 4.33

The solvency ratios of Par Pacific Holdings Inc indicate its ability to meet long-term debt obligations and sustain its operations. Looking at the trend from Q1 2022 to Q4 2023:

1. Debt-to-assets ratio has decreased from 0.54 in Q1 2022 to 0.33 in Q4 2023. This suggests that the company has reduced its reliance on debt to finance its assets, which is a positive sign for creditors and investors.

2. Debt-to-capital ratio has also shown a declining trend, decreasing from 0.93 in Q1 2022 to 0.49 in Q4 2023. This indicates that the company is utilizing less debt in relation to its total capital, which can improve its financial stability and reduce the risk of insolvency.

3. Debt-to-equity ratio has significantly dropped from 12.52 in Q1 2022 to 0.94 in Q4 2023, reflecting a substantial improvement in the company's overall financial structure and a lower reliance on equity financing.

4. Financial leverage ratio has followed a similar downward trend, decreasing from 23.19 in Q1 2022 to 2.89 in Q4 2023. This decrease signifies a reduction in the financial risk associated with high leverage and indicates a stronger financial position for the company.

Overall, the decreasing trend in these solvency ratios over the quarters signals an improvement in Par Pacific Holdings Inc's financial health and ability to manage its long-term debt obligations more efficiently.

Coverage ratios

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
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

The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher ratio indicates that the company has more operating income available to cover its interest expenses.

Looking at Par Pacific Holdings Inc's interest coverage ratio over the past eight quarters, we can see fluctuations in the ratio. In the most recent quarter, Q4 2023, the interest coverage ratio was 10.13, indicating that the company generated operating income more than ten times its interest expenses.

Over the past four quarters, the interest coverage ratio has generally been improving, with Q1 2023 showing the highest ratio of 12.36. This trend suggests that the company's ability to cover its interest expenses has been strengthening.

However, it is worth noting that the interest coverage ratio was negative in Q1 2022, indicating that the company's operating income was insufficient to cover its interest expenses during that quarter.

Overall, the trend of improving interest coverage ratios is positive and indicates that Par Pacific Holdings Inc's operating income is generally sufficient to cover its interest expenses, which is a good sign for the company's financial health.