Pinnacle West Capital Corp (PNW)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	2,929,219	2,974,971	2,904,279	2,836,584	2,702,908	2,458,440	2,306,588	2,201,866	2,107,524	2,064,980	1,977,242	1,936,794	1,920,632	2,361,929	2,199,755	2,049,435	1,935,745	1,355,911	1,398,551	1,411,933
Inventory	US$ in thousands	493,547	493,829	492,792	465,028	450,636	439,790	401,482	379,059	367,167	381,041	365,746	339,098	334,297	339,077	335,625	340,475	345,920	312,426	315,381	307,151
Inventory turnover		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	5.60	4.34	4.43	4.60

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,929,219K ÷ $493,547K
= 5.94

Based on the inventory turnover ratios of Pinnacle West Capital Corp. over the past eight quarters, the company has shown a relatively stable trend, hovering around the range of 3.22 to 3.79. This indicates that on average, the company is turning over its inventory approximately 3.5 times a year.

A consistent inventory turnover ratio suggests that Pinnacle West Capital Corp. has been effectively managing its inventory levels to meet customer demand without excessive stockpiling. This can help reduce holding costs and the risk of obsolescence, leading to improved efficiency and profitability within the company's operations.

While the trend has been generally stable, a closer look at the quarterly variations in the inventory turnover ratio could provide insights into seasonality, market demand fluctuations, or potential changes in inventory management strategies that may have affected the company's performance in specific periods. Overall, a healthy and consistent inventory turnover ratio is essential for ensuring effective working capital management and operational performance for Pinnacle West Capital Corp.