Pinnacle West Capital Corp (PNW)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	3,121,101	3,015,818	2,973,336	2,912,993	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
Inventory	US$ in thousands	501,442	528,040	549,045	489,173	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
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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,121,101K ÷ $501,442K
= 6.22

The inventory turnover ratio for Pinnacle West Capital Corp over the past few years shows fluctuations within a range. The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a specific period.

From March 31, 2020, to December 31, 2024, the inventory turnover ranged between a low of 5.41 on June 30, 2021, and a high of 6.97 on September 30, 2020. The average inventory turnover during this period was approximately 5.82.

A higher inventory turnover ratio generally indicates that the company is selling its inventory more efficiently. A steady or increasing trend in the turnover ratio may suggest effective inventory management practices, while a declining trend could indicate potential issues with sales or inventory control.

Overall, Pinnacle West Capital Corp's inventory turnover ratios demonstrate a reasonably consistent performance in managing its inventory levels and sales during the period under review. Monitoring inventory turnover ratios over time can provide insights into the company's operational efficiency and financial performance.