Pinnacle West Capital Corp (PNW)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,012,063 | 1,001,905 | 971,182 | 840,715 | 824,640 | 787,011 | 688,321 | 728,136 | 731,911 | 745,177 | 756,977 | 812,268 | 805,310 | 786,141 | 811,776 | 795,264 | 788,152 | 769,301 | 717,583 | 652,298 |
| Total assets | US$ in thousands | 26,102,800 | 26,309,600 | 25,701,100 | 24,847,700 | 24,661,200 | 24,434,400 | 23,979,300 | 23,580,400 | 22,723,400 | 22,844,600 | 22,501,500 | 22,201,000 | 22,003,200 | 21,536,400 | 21,061,600 | 20,184,700 | 20,020,400 | 19,751,400 | 19,307,400 | 18,561,800 |
| Operating ROA | 3.88% | 3.81% | 3.78% | 3.38% | 3.34% | 3.22% | 2.87% | 3.09% | 3.22% | 3.26% | 3.36% | 3.66% | 3.66% | 3.65% | 3.85% | 3.94% | 3.94% | 3.89% | 3.72% | 3.51% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,012,063K ÷ $26,102,800K
= 3.88%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profit from its operating activities relative to its total assets. For Pinnacle West Capital Corp, the Operating ROA has shown some fluctuations over the quarters analyzed.
From March 31, 2020, to December 31, 2020, the Operating ROA improved steadily from 3.51% to 3.94%, indicating enhanced operating efficiency and profitability. However, from March 31, 2021, to June 30, 2022, there was a slight decline in the Operating ROA, reaching a low of 2.87% on June 30, 2023. This downward trend may suggest potential challenges in effectively utilizing the company's assets to generate operating income during this period.
Subsequently, from December 31, 2023, to December 31, 2024, the Operating ROA showed signs of recovery, increasing to 3.88%. This improvement signals that Pinnacle West Capital Corp may have implemented operational changes or strategies to enhance profitability relative to its asset base.
Overall, the fluctuations in Pinnacle West Capital Corp's Operating ROA reflect varying levels of efficiency in utilizing its assets to generate operating income over the quarters analyzed, with periods of both improvement and decline. For investors and stakeholders, monitoring this ratio can provide insights into the company's operational performance and efficiency in generating returns from its asset base.
Peer comparison
Dec 31, 2024