Pinnacle West Capital Corp (PNW)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	501,557	483,602	618,720	550,559	538,320
Total assets	US$ in thousands	24,661,200	22,723,400	22,003,200	20,020,400	18,479,200
ROA		2.03%	2.13%	2.81%	2.75%	2.91%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $501,557K ÷ $24,661,200K
= 2.03%

Based on the data provided for Pinnacle West Capital Corp., the return on assets (ROA) has displayed some fluctuations over the past five years. ROA decreased from 2.91% in 2019 to 2.75% in 2020, before showing a declining trend in 2021 with ROA at 2.81%. However, there was a further decrease in ROA to 2.13% in 2022 and to 2.03% in 2023.

This downward trend in ROA indicates that, over time, Pinnacle West Capital Corp. has been less effective in generating profits from its assets. It is crucial for the company to closely monitor its asset management efficiency and consider strategies to enhance profitability through better utilization of its assets.

Further analysis of the company's operational and financial performance is recommended to identify the factors contributing to the declining ROA and to implement measures for improving the company's overall profitability and asset utilization.