Pinnacle West Capital Corp (PNW)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 578,469 | 558,429 | 728,806 | 628,732 | 522,547 |
| Revenue | US$ in thousands | 4,695,990 | 4,324,380 | 3,803,840 | 3,586,980 | 3,471,210 |
| Pretax margin | 12.32% | 12.91% | 19.16% | 17.53% | 15.05% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $578,469K ÷ $4,695,990K
= 12.32%
The pretax margin of Pinnacle West Capital Corp. has shown some fluctuations over the past five years. In 2023, the pretax margin decreased to 12.69% from 13.31% in 2022. This decline indicates that the company's profitability before accounting for taxes decreased slightly compared to the previous year.
Despite the decrease in 2023, the pretax margin remains at a respectable level, indicating the company's ability to generate profits relative to its total revenue. In comparison to the higher pretax margins seen in 2021 and 2020, the recent decrease may be a point of concern for investors, as it suggests a potential impact on the company's overall profitability.
Further analysis of the company's operating expenses, cost structure, and revenue generation may be needed to understand the factors contributing to the fluctuations in the pretax margin over the years. Monitoring this metric and identifying underlying drivers will be crucial for evaluating the company's financial performance and making informed investment decisions.
Peer comparison
Dec 31, 2023