Pinnacle West Capital Corp (PNW)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,695,990	4,324,380	3,803,840	3,586,980	3,471,210
Property, plant and equipment	US$ in thousands	15,803,100	14,522,300	14,184,100	13,727,600	13,198,400
Fixed asset turnover		0.30	0.30	0.27	0.26	0.26

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,695,990K ÷ $15,803,100K
= 0.30

The fixed asset turnover ratio for Pinnacle West Capital Corp. has shown a consistent increase over the past five years, from 0.25 in 2019 to 0.27 in 2023. This indicates that the company is generating more revenue for each dollar invested in fixed assets. The improvement in the fixed asset turnover ratio suggests that Pinnacle West is using its fixed assets more efficiently to generate sales. This could be a result of operational improvements, better asset utilization, or effective capital allocation strategies. Overall, the trend in the fixed asset turnover ratio reflects positively on the company's ability to generate revenue from its investment in fixed assets.