Pinnacle West Capital Corp (PNW)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	1,926,970	1,750,550	1,551,100	1,198,320	1,030,030
Total current liabilities	US$ in thousands	2,889,350	1,762,140	1,756,870	1,360,430	2,078,360
Current ratio		0.67	0.99	0.88	0.88	0.50

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,926,970K ÷ $2,889,350K
= 0.67

The current ratio of Pinnacle West Capital Corp. has fluctuated over the past five years, ranging from 0.50 in 2019 to 0.99 in 2022. The current ratio measures the company's ability to cover its short-term obligations with its current assets. Generally, a current ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its current assets.

In 2023, the current ratio decreased to 0.67, suggesting a potential weakening in the company's short-term liquidity position compared to the previous year. This could raise concerns about the company's ability to meet its immediate financial obligations using its current assets. It is advisable for stakeholders to monitor this trend closely to understand the company's liquidity position and its ability to manage short-term financial obligations efficiently.