Pinnacle West Capital Corp (PNW)

Fixed asset turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 5,124,920 4,695,990 4,324,380 3,803,840 3,586,980
Property, plant and equipment US$ in thousands 16,833,500 15,803,100 14,522,300 14,184,100 13,727,600
Fixed asset turnover 0.30 0.30 0.30 0.27 0.26

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,124,920K ÷ $16,833,500K
= 0.30

The fixed asset turnover ratio of Pinnacle West Capital Corp has shown a slight improvement over the years, from 0.26 in December 2020 to 0.30 in December 2024. This indicates that the company is generating more revenue relative to its investment in fixed assets. A higher fixed asset turnover ratio is generally favorable as it suggests that the company is using its fixed assets efficiently to generate sales. Pinnacle West Capital Corp's consistent increase in fixed asset turnover ratio may indicate improved operational efficiency and effective utilization of its fixed assets over the years. It is important for the company to continue monitoring and managing its fixed assets effectively to sustain this positive trend in the long term.