Pinnacle West Capital Corp (PNW)

Current ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total current assets	US$ in thousands	1,926,970	2,161,940	1,851,740	1,748,390	1,750,550	2,016,560	1,798,150	1,594,590	1,551,100	1,709,150	1,523,180	1,169,780	1,198,320	1,454,690	1,147,090	1,078,310	1,030,030	1,133,160	1,028,570	876,389
Total current liabilities	US$ in thousands	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	2,078,360	1,586,750	1,900,960	1,591,300
Current ratio		0.67	1.10	0.96	1.01	0.99	0.98	0.89	1.00	0.88	1.04	0.75	0.88	0.88	1.17	0.77	0.47	0.50	0.71	0.54	0.55

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 exhibited fluctuations over the past eight quarters. In Q4 2023, the current ratio was relatively low at 0.67, indicating a potential liquidity concern as current assets may not be sufficient to cover current liabilities. However, the ratio improved in Q3 2023 to 1.10, indicating a healthier liquidity position with current assets exceeding current liabilities.

In the previous quarters, the current ratio hovered around the 1.00 mark, suggesting a balanced liquidity position where current assets were roughly equal to current liabilities. Q2 2023 and Q1 2023 saw the ratio slightly below 1.00 at 0.96 and 1.01, respectively, which may warrant monitoring but did not raise immediate liquidity concerns.

In comparison to the same quarters in the prior year, there were varying levels of improvement and deterioration in the current ratio. Notably, the current ratio in Q4 2022 was slightly higher at 0.99, while Q3 2022 and Q2 2022 had lower ratios at 0.98 and 0.89, respectively. Q1 2022 showed a similar ratio to Q3 2023 at 1.00.

Overall, the trend in the current ratio of Pinnacle West Capital Corp. suggests some fluctuations in liquidity levels over the past eight quarters, with periodic improvements and declines in the ability to meet short-term obligations with current assets. Monitoring this ratio over time can provide insights into the company's liquidity management and financial health.