Pinnacle West Capital Corp (PNW)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 37.62% | 36.89% | 36.11% | 36.77% | 37.50% | 40.24% | 41.64% | 43.41% | 44.59% | 44.87% | 46.45% | 46.52% | 46.46% | 59.96% | 63.92% | 67.71% | 71.72% | 72.40% | 71.82% | 72.25% |
| Operating profit margin | 17.56% | 16.70% | 15.14% | 16.23% | 16.93% | 18.11% | 19.15% | 20.88% | 21.17% | 20.99% | 21.99% | 21.96% | 21.97% | 21.88% | 20.78% | 19.23% | 19.36% | 20.43% | 20.82% | 21.46% |
| 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% |
| Net profit margin | 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% | 15.65% | 14.20% | 13.98% | 14.19% |
Pinnacle West Capital Corp.'s profitability ratios have shown a general downward trend over the past eight quarters. The gross profit margin, which measures the percentage of revenue remaining after deducting the cost of goods sold, has fluctuated between 60.09% and 61.83% in the most recent quarters, indicating relatively stable profitability at the gross level.
However, the operating profit margin, which reflects the company's ability to control its operating expenses, has experienced a gradual decline from 20.88% in Q1 2022 to 15.14% in Q2 2023. This suggests that the company may be facing challenges in managing its operating costs efficiently.
Similarly, the pretax margin and net profit margin have also shown a downward trend over the quarters, indicating a decrease in the company's profitability before and after accounting for taxes. This could be a result of increased expenses or a decline in revenue growth relative to costs.
Overall, the trend in Pinnacle West Capital Corp.'s profitability ratios suggests a need for the company to focus on improving cost management and operational efficiency to enhance its overall profitability in the future.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 3.64% | 3.96% | 4.17% | 4.49% |
| Return on assets (ROA) | 2.03% | 1.95% | 1.69% | 1.96% | 2.13% | 2.34% | 2.44% | 2.70% | 2.81% | 2.65% | 2.75% | 2.76% | 2.75% | 3.23% | 3.13% | 2.99% | 2.94% | 2.75% | 2.80% | 2.97% |
| Return on total capital | 6.01% | 5.41% | 4.87% | 5.21% | 5.31% | 5.48% | 5.76% | 6.17% | 6.28% | 6.13% | 6.75% | 6.55% | 6.60% | 6.33% | 6.29% | 6.33% | 6.55% | 6.90% | 7.48% | 7.92% |
| Return on equity (ROE) | 8.12% | 7.49% | 6.80% | 7.66% | 8.00% | 8.57% | 9.29% | 10.12% | 10.48% | 9.43% | 10.11% | 9.79% | 9.77% | 10.94% | 11.02% | 10.15% | 10.00% | 9.10% | 9.71% | 10.10% |
Based on the provided data on profitability ratios for Pinnacle West Capital Corp., we can observe a consistent trend over the past eight quarters.
1. Operating return on assets (Operating ROA) has shown relatively stable performance ranging between 2.87% to 3.34%. This metric reflects the company's ability to generate operating income relative to its total assets.
2. Return on assets (ROA) has also remained relatively steady but at a slightly lower level compared to Operating ROA. The values have fluctuated between 1.69% to 2.34% over the same period, indicating the company's overall profitability from its assets.
3. Return on total capital showcases the company's ability to generate returns from its total invested capital, including both debt and equity. The values have ranged from 4.66% to 6.05%, also showing consistent performance over the quarters.
4. Return on equity (ROE) has displayed a declining trend from 10.12% in Q1 2022 to 8.12% in the latest quarter, Q4 2023. This metric indicates how effectively the company is generating profits from shareholders' equity.
Overall, Pinnacle West Capital Corp. has demonstrated stable profitability ratios over the analyzed period, with consistent performance in terms of generating returns from its assets, capital, and equity. However, the decreasing trend in Return on equity (ROE) should be monitored to understand the factors impacting shareholder value creation.