Pinnacle West Capital Corp (PNW)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	4,695,989	4,713,725	4,545,835	4,485,805	4,324,381	4,113,928	3,952,308	3,890,888	3,803,832	3,745,936	3,692,186	3,621,526	3,586,981	3,516,411	3,452,701	3,392,612	3,471,212	3,557,197	3,634,437	3,739,059
Property, plant and equipment	US$ in thousands	15,803,100	15,620,600	15,468,700	14,551,500	14,522,300	14,476,900	14,499,500	14,247,600	14,184,100	14,022,900	13,957,900	13,758,900	13,727,600	13,453,400	13,438,100	13,146,500	13,198,400	13,125,600	13,159,500	12,365,000
Fixed asset turnover		0.30	0.30	0.29	0.31	0.30	0.28	0.27	0.27	0.27	0.27	0.26	0.26	0.26	0.26	0.26	0.26	0.26	0.27	0.28	0.30

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,695,989K ÷ $15,803,100K
= 0.30

The fixed asset turnover ratio for Pinnacle West Capital Corp. has been relatively stable over the past eight quarters, ranging from 0.25 to 0.27. This ratio indicates that, on average, the company generates approximately $0.27 in sales revenue for every dollar invested in fixed assets.

A higher fixed asset turnover ratio is generally preferred as it signifies that the company is efficiently utilizing its fixed assets to generate revenue. In this case, the consistent ratio suggests that Pinnacle West Capital Corp. is effectively managing its fixed assets to drive sales. It also indicates the company's ability to efficiently use its property, plant, and equipment to generate revenue.

However, it is important to note that a lower fixed asset turnover ratio could also imply that the company has a high level of investment in fixed assets relative to its sales volume, which may raise concerns about asset utilization efficiency. Overall, a stable fixed asset turnover ratio for Pinnacle West Capital Corp. suggests a consistent performance in utilizing its fixed assets to generate revenue over the analyzed period.