Pinnacle West Capital Corp (PNW)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	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	543,193	505,288	508,024	530,617
Total assets	US$ in thousands	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	18,479,200	18,377,600	18,165,700	17,854,100
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%

December 31, 2023 calculation

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

Based on the data provided for Pinnacle West Capital Corp.'s return on assets (ROA) over the past eight quarters, we observe a consistent downward trend from Q1 2022 to Q2 2023. The ROA declined from 2.70% in Q1 2022 to 1.69% in Q2 2023, indicating decreasing efficiency in generating profit from its assets during this period.

This downward trend in ROA suggests that the company may be facing challenges in optimizing its asset utilization and profitability. It is essential for Pinnacle West Capital Corp. to analyze the reasons behind this decline in ROA and take strategic actions to improve its asset management and overall financial performance in the future.