Pinnacle West Capital Corp (PNW)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	3,838	49,171	4,007	9,634	4,955	15,108	7,658	6,951	4,832	7,032	29,189	13,968	9,969	25,688	14,146	17,202	59,968	181,926	6,763	63,139
Short-term investments	US$ in thousands	—	641	760	78	38,585	11,376	12,105	16,095	5,709,820	164,794	48,302	206,102	144,792	126,595	82,309	22,611	1,485,870	1,434,980	—	—
Total current liabilities	US$ in thousands	2,843,800	3,197,350	3,112,020	3,055,870	2,889,350	1,968,340	1,932,580	1,724,330	1,762,140	2,060,900	2,022,450	1,596,730	1,756,870	1,649,260	2,023,270	1,330,540	1,360,430	1,244,780	1,496,360	2,295,490
Cash ratio		0.00	0.02	0.00	0.00	0.02	0.01	0.01	0.01	3.24	0.08	0.04	0.14	0.09	0.09	0.05	0.03	1.14	1.30	0.00	0.03

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 measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

From the provided data, the cash ratio of Pinnacle West Capital Corp fluctuated throughout the reported periods. It was notably low at 0.00 in June 2020 and March 2021, indicating a limited ability to cover short-term liabilities with cash during those periods.

However, the company's cash ratio improved significantly in subsequent periods, reaching its highest point of 3.24 in December 2022. This suggests a robust liquidity position at the end of 2022, with ample cash reserves to cover short-term liabilities.

Although there were some fluctuations in the cash ratio in the following periods, it generally remained above 0.00, indicating a positive trend in the company's ability to meet short-term obligations with cash on hand.

Overall, the cash ratio analysis suggests that Pinnacle West Capital Corp has made improvements in its liquidity position over the reported periods, with better capacity to handle short-term financial commitments.