Pinnacle West Capital Corp (PNW)

Net profit margin

		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
Net income (ttm)	US$ in thousands	608,806	615,610	618,858	521,716	501,557	477,588	405,700	463,349	483,602	535,178	548,650	600,035	618,720	571,745	578,319	556,207	550,559	638,804	604,708	555,268
Revenue (ttm)	US$ in thousands	5,124,912	5,021,076	4,890,036	4,702,746	4,695,989	4,713,725	4,545,835	4,485,805	4,324,381	4,113,928	3,952,308	3,890,888	3,803,832	3,745,936	3,692,186	3,621,526	3,586,981	3,516,411	3,452,701	3,392,612
Net profit margin		11.88%	12.26%	12.66%	11.09%	10.68%	10.13%	8.92%	10.33%	11.18%	13.01%	13.88%	15.42%	16.27%	15.26%	15.66%	15.36%	15.35%	18.17%	17.51%	16.37%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $608,806K ÷ $5,124,912K
= 11.88%

The net profit margin of Pinnacle West Capital Corp has exhibited fluctuations over the analyzed period. Starting at 16.37% in March 2020, the margin improved to 18.17% by September 2020, reflecting a positive trend. However, there was a decrease to 15.35% by December 2020. The margin remained relatively stable in the range of 15-16% until the middle of 2022.

From June 2022 to December 2024, there was a declining trend in the net profit margin, dropping to 11.88% by the end of December 2024. Notably, the margin experienced a significant decrease during the latter half of 2022 and continued to decline through 2023 and the first half of 2024.

This downward trend in the net profit margin could indicate challenges in controlling costs or generating sufficient revenues to maintain profitability. It would be crucial for stakeholders to closely monitor the company's financial performance and identify strategies to improve profitability in the future.