Pinnacle West Capital Corp (PNW)

Return on assets (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
Net income (ttm)	US$ in thousands	608,806	615,610	618,858	521,716	501,557	477,588	405,700	463,349	483,602	535,178	548,650	600,035	618,720	571,745	578,319	556,207	550,559	638,804	604,708	555,268
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
ROA		2.33%	2.34%	2.41%	2.10%	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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $608,806K ÷ $26,102,800K
= 2.33%

The return on assets (ROA) for Pinnacle West Capital Corp has shown some fluctuations over the reported periods from March 31, 2020, to December 31, 2024. Initially starting at 2.99% in March 2020, the ROA increased slightly to 3.13% by June 2020 and further to 3.23% by September 2020, indicating improved efficiency in generating profits from its assets.

However, there was a decline in ROA to 2.75% by December 31, 2020, and this trend continued with fluctuations between 2.75% and 2.81% until March 31, 2021. The ROA then started to decrease, reaching 1.69% by June 30, 2023, before showing a slight recovery to 2.33% by December 31, 2024.

Overall, the decreasing trend in ROA from 2021 to mid-2023 reflects potential challenges in effectively utilizing assets to generate profits. The business may need to focus on improving asset efficiency and profitability to increase its return on assets in the future.