Pinnacle West Capital Corp (PNW)

Liquidity ratios

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
Current ratio 0.59 0.71 0.66 0.58 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
Quick ratio 0.18 0.27 0.18 0.14 0.19 0.34 0.25 0.27 3.49 0.36 0.23 0.33 0.30 0.34 0.21 0.21 1.36 1.62 0.19 0.15
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

The current ratio of Pinnacle West Capital Corp has shown fluctuations over the reporting periods, ranging from a low of 0.47 to a high of 1.17. The company's current ratio improved in the most recent periods, standing at 1.10 as of September 30, 2023, indicating that the company's current assets are sufficient to cover its current liabilities.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also varied significantly across the periods. The company has demonstrated an ability to meet its short-term obligations with its most liquid assets, as evidenced by quick ratios exceeding 1.0 in several instances.

The cash ratio of Pinnacle West Capital Corp, which specifically measures the company's ability to cover its current liabilities with its cash and cash equivalents, has been relatively low across the periods. However, there were notable improvements in the cash ratio in the later periods, reaching 0.27 as of September 30, 2024.

Overall, Pinnacle West Capital Corp has shown mixed performance in terms of liquidity, with improvements in the current and quick ratios over time. The company has managed to enhance its ability to meet short-term obligations and maintain sufficient liquidity levels.

Additional liquidity measure

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 conversion cycle days 37.54 71.59 40.97 33.12 44.59 60.79 43.89 49.03 40.16 46.11 31.17 34.73 31.41 44.30 30.95 30.11 33.57 49.75 33.35 36.14

The cash conversion cycle of Pinnacle West Capital Corp experienced fluctuations over the periods analyzed. The cycle measures the time it takes for a company to convert its investments in inventory back into cash. A shorter cash conversion cycle indicates that the company is efficient in managing its working capital.

From March 31, 2020, to September 30, 2020, the company's cash conversion cycle increased significantly from 36.14 days to 49.75 days, indicating a potential slowdown in converting inventory into cash. However, by March 31, 2021, the cycle improved to 30.11 days, suggesting enhanced efficiency in working capital management.

The cycle remained relatively stable around the 30-40 day range for most of 2021 and early 2022. However, it started to increase again, reaching a peak of 71.59 days on September 30, 2024, signaling a potential increase in the time it takes to convert inventory investments into cash.

Overall, Pinnacle West Capital Corp's cash conversion cycle has shown fluctuations, with periods of both improvement and deterioration in working capital efficiency. It would be essential for the company to closely monitor and manage its inventory levels and cash conversion processes to optimize working capital efficiency and maintain healthy cash flow levels.