Pinnacle West Capital Corp (PNW)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,838 | 4,955 | 4,832 | 9,969 | 59,968 |
| Short-term investments | US$ in thousands | — | 38,585 | 5,709,820 | 63,481 | 2,931 |
| Total current liabilities | US$ in thousands | 2,843,800 | 2,889,350 | 1,762,140 | 1,756,870 | 1,360,430 |
| Cash ratio | 0.00 | 0.02 | 3.24 | 0.04 | 0.05 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,838K
+ $—K)
÷ $2,843,800K
= 0.00
The cash ratio of Pinnacle West Capital Corp has shown significant fluctuations over the years according to the provided data. In December 31, 2020, the company had a cash ratio of 0.05, indicating that it had $0.05 in cash and cash equivalents for every $1 of current liabilities. This ratio decreased slightly to 0.04 by December 31, 2021.
However, there was a notable increase in the cash ratio to 3.24 by December 31, 2022, suggesting a substantial improvement in the company's liquidity position with $3.24 in cash and cash equivalents for every $1 of current liabilities. This sharp increase could be a result of a significant increase in cash reserves or a reduction in current liabilities.
The cash ratio dropped significantly to 0.02 by December 31, 2023, indicating a potential decline in the company's ability to cover its short-term obligations with its available cash resources. By December 31, 2024, the cash ratio plummeted to 0.00, which means that the company may have had insufficient cash to cover its immediate liabilities.
In conclusion, Pinnacle West Capital Corp's cash ratio has exhibited notable fluctuations over the years, with a sharp increase in 2022 followed by a significant decline in subsequent years. These fluctuations could indicate changes in the company's cash position and liquidity management strategies.
Peer comparison
Dec 31, 2024