Pinnacle West Capital Corp (PNW)

Pretax margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	578,469	542,963	466,758	535,198	558,429	614,768	647,375	718,632	728,806	665,905	677,850	650,239	628,732	648,353	590,289	516,868	527,420	584,847	618,650	668,202
Revenue (ttm)	US$ in thousands	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	3,471,212	3,557,197	3,634,437	3,739,059
Pretax margin		12.32%	11.52%	10.27%	11.93%	12.91%	14.94%	16.38%	18.47%	19.16%	17.78%	18.36%	17.95%	17.53%	18.44%	17.10%	15.24%	15.19%	16.44%	17.02%	17.87%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $578,469K ÷ $4,695,989K
= 12.32%

Pinnacle West Capital Corp.'s pretax margin has shown a decreasing trend over the last four quarters, dropping from 13.31% in Q4 2022 to 12.69% in Q4 2023. This indicates that the company's ability to generate profits before accounting for taxes has declined. The most recent pretax margin of 12.69% in Q4 2023 is lower than the average of the previous quarters (Q3 2023 to Q1 2022), which was 14.69%. This suggests a recent decrease in the company's profitability compared to the recent past. Further investigation into the factors contributing to the decline in pretax margin may be warranted to understand the underlying reasons for this trend.