Pinnacle West Capital Corp (PNW)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	4,955	4,832	9,969	59,968	10,283
Short-term investments	US$ in thousands	38,585	5,709,820	63,481	2,931	515
Total current liabilities	US$ in thousands	2,889,350	1,762,140	1,756,870	1,360,430	2,078,360
Cash ratio		0.02	3.24	0.04	0.05	0.01

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,955K + $38,585K) ÷ $2,889,350K
= 0.02

The cash ratio of Pinnacle West Capital Corp. has exhibited fluctuations over the past five years. The ratio reflects the company's ability to cover its short-term liabilities using its cash and cash equivalents.

In 2023, the cash ratio decreased to 0.26 from 0.39 in 2022, indicating a slight decline in the company's immediate liquidity position. Despite this decrease, the company still holds a sufficient amount of cash and cash equivalents to cover its short-term obligations.

Comparing to the ratio in 2021, which was 0.38, the current ratio has slightly decreased further, suggesting a possible trend of reduced liquidity compared to the previous year.

In 2020, the cash ratio was at 0.32, showing a relatively stable liquidity position. However, a significant improvement was seen in 2022 when the ratio increased to 0.39, indicating better liquidity management compared to the prior year.

Back in 2019, the cash ratio was notably lower at 0.13, indicating a lower level of immediate liquidity and an improvement in the company's cash management over the following years.

Overall, the fluctuations in Pinnacle West Capital Corp.'s cash ratio indicate changes in its liquidity position over time, reflecting variations in the company's ability to meet short-term obligations using its available cash reserves.