Pinnacle West Capital Corp (PNW)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover		6.22	5.71	5.42	5.95	5.94	6.02	5.89	6.10	6.00	5.59	5.75	5.81	5.74	5.42	5.41	5.71	5.75	6.97	6.55	6.02
DOH	days	58.64	63.91	67.40	61.29	61.50	60.59	61.93	59.84	60.85	65.29	63.53	62.84	63.59	67.35	67.52	63.90	63.53	52.40	55.69	60.64

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.22
= 58.64

The Days of Inventory on Hand (DOH) ratio for Pinnacle West Capital Corp has shown some fluctuations over the past few years. From March 31, 2020, to December 31, 2024, the DOH has ranged from a low of 52.40 days to a high of 67.52 days. The company has generally managed to keep its inventory turnover within a reasonable range, indicating efficient management of inventory levels.

It is noteworthy that there was a slight increase in DOH from March 31, 2021, to June 30, 2021, reaching 67.52 days, which may suggest a slower inventory turnover during that period. However, the ratio decreased to 60.85 days by December 31, 2022, which indicates an improvement in inventory management efficiency.

The most recent DOH figure of 58.64 days as of December 31, 2024, shows a lower inventory holding period compared to the historical average and is a positive sign for the company as it implies potential cost savings from reduced inventory carrying costs.

Overall, the trend in the DOH ratio for Pinnacle West Capital Corp demonstrates a level of stability and effectiveness in managing inventory levels to meet demand without excessive stockpiling. However, it may be beneficial for the company to continue monitoring and optimizing its inventory turnover to enhance overall operational efficiency and profitability.