Pinnacle West Capital Corp (PNW)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	608,806	501,557	483,602	618,720	550,559
Revenue	US$ in thousands	5,124,920	4,695,990	4,324,380	3,803,840	3,586,980
Net profit margin		11.88%	10.68%	11.18%	16.27%	15.35%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $608,806K ÷ $5,124,920K
= 11.88%

To analyze Pinnacle West Capital Corp's net profit margin over the years, we observe the following trends:

- In December 2020, the net profit margin stood at 15.35%, indicating that the company retained 15.35% of its total revenue as profit after accounting for all expenses.
- By December 2021, there was a slight improvement in the net profit margin to 16.27%, suggesting more efficient cost management or potentially higher revenue generation.
- However, in December 2022, there was a noticeable decline in the net profit margin to 11.18%, which could be a result of increased expenses or lower revenue relative to the previous period.
- This trend continued into December 2023, with the net profit margin decreasing further to 10.68%, indicating potential challenges in maintaining profitability.
- Nevertheless, by December 2024, there was a slight recovery in the net profit margin to 11.88%, although it remains below the levels seen in 2020 and 2021.

Overall, the fluctuations in Pinnacle West Capital Corp's net profit margin over the years suggest varying levels of operational efficiency and profitability. It would be important for the company to closely monitor its cost structure and revenue streams to sustain and enhance its financial performance in the future.