Pinnacle West Capital Corp (PNW)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	608,806	501,557	483,602	618,720	550,559
Total stockholders’ equity	US$ in thousands	6,754,310	6,177,660	6,048,650	5,906,200	5,633,500
ROE		9.01%	8.12%	8.00%	10.48%	9.77%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $608,806K ÷ $6,754,310K
= 9.01%

Pinnacle West Capital Corp's return on equity (ROE) has shown a fluctuating trend over the past five years.

As of December 31, 2020, the ROE stood at 9.77%, indicating that for every dollar of shareholders' equity, the company generated a profit of 9.77 cents.

Subsequently, by the end of December 31, 2021, the ROE improved to 10.48%, reflecting positively on the company's ability to generate profits from the shareholders' investments.

However, there was a slight decline in the ROE by the end of 2022, dropping to 8.00%. This decrease could be attributed to various factors such as changes in earnings or shareholders' equity.

The ROE remained relatively stable in 2023, with a marginal increase to 8.12%. This stability indicates a consistent performance in generating returns for shareholders.

By December 31, 2024, the ROE improved to 9.01%, showcasing a recovery from the previous dip in 2022 and suggesting enhanced profitability relative to shareholders' equity.

Overall, while the ROE of Pinnacle West Capital Corp has experienced fluctuations over the years, the company has generally exhibited a capability to generate profits efficiently from the shareholders' investments.