Pinnacle West Capital Corp (PNW)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	1,012,060	824,640	731,911	805,310	788,152
Revenue	US$ in thousands	5,124,920	4,695,990	4,324,380	3,803,840	3,586,980
Operating profit margin		19.75%	17.56%	16.93%	21.17%	21.97%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $1,012,060K ÷ $5,124,920K
= 19.75%

Pinnacle West Capital Corp's operating profit margin has shown some fluctuations over the years based on the provided data. As of December 31, 2020, the operating profit margin was 21.97%, indicating that the company generated 21.97 cents of operating profit for every dollar of sales. By December 31, 2021, the operating profit margin slightly decreased to 21.17%.

However, there was a more noticeable decline in the operating profit margin by December 31, 2022, where it dropped to 16.93%. This decrease suggests that Pinnacle West may have experienced higher operating expenses relative to its revenue during that period.

The operating profit margin improved slightly by December 31, 2023, reaching 17.56%, but remained below the levels seen in the earlier years.

Finally, as of December 31, 2024, the operating profit margin rose to 19.75%, indicating a recovery in profitability. Overall, the company's operating profit margin has experienced fluctuations, highlighting the importance of managing operating expenses and maintaining efficient operations to sustain profitability.