Pinnacle West Capital Corp (PNW)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 4,955 | 4,832 | 9,969 | 59,968 | 10,283 |
| Short-term investments | US$ in thousands | 38,585 | 5,709,820 | 63,481 | 2,931 | 515 |
| Receivables | US$ in thousands | 491,791 | 443,517 | 374,083 | 300,586 | 279,982 |
| Total current liabilities | US$ in thousands | 2,889,350 | 1,762,140 | 1,756,870 | 1,360,430 | 2,078,360 |
| Quick ratio | 0.19 | 3.49 | 0.25 | 0.27 | 0.14 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,955K
+ $38,585K
+ $491,791K)
÷ $2,889,350K
= 0.19
The quick ratio of Pinnacle West Capital Corp. has shown some fluctuations over the past five years. The ratio measures the company's ability to meet its short-term obligations with its most liquid assets and excludes inventory from the calculation.
In 2023, the quick ratio decreased to 0.48 from 0.74 in 2022, which indicates a decrease in the company's ability to cover its current liabilities with its quick assets. This may suggest a potential liquidity challenge compared to the previous year.
However, in 2022, the quick ratio improved to 0.74 from 0.67 in 2021, reflecting a better ability to meet short-term obligations. The increase in 2022 could indicate enhanced liquidity management or an increase in liquid assets relative to current liabilities.
Similarly, the quick ratio was 0.67 in 2021 and 0.64 in 2020, which shows a relatively stable liquidity position over those years. In contrast, there was a notable decrease in the quick ratio from 0.64 in 2020 to 0.33 in 2019, signaling a significant decline in liquidity from 2019 to 2020.
Overall, the trend in the quick ratio for Pinnacle West Capital Corp. suggests some variability in the company's short-term liquidity position, with improvements and declines observed over the period. Further analysis of the company's current asset composition and management of short-term liabilities may provide additional insights into its liquidity strengths and challenges.
Peer comparison
Dec 31, 2023