Pinnacle West Capital Corp (PNW)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	6,177,660	6,374,680	5,966,920	6,048,920	6,048,650	6,244,560	5,908,280	5,930,570	5,906,200	6,064,880	5,717,620	5,682,520	5,633,500	5,841,390	5,489,560	5,469,420	5,430,650	5,552,670	5,233,080	5,251,060
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%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $501,557K ÷ $6,177,660K
= 8.12%

To analyze Pinnacle West Capital Corp.'s Return on Equity (ROE) over the past eight quarters, we observe a slight declining trend from Q1 2022 to Q4 2023.

In Q1 2022, the ROE was at its highest at 10.12%, indicating that for every dollar of shareholders' equity, the company generated a return of 10.12%. However, from Q1 2022 to Q4 2023, the ROE gradually decreased to 8.12%. This decline could suggest potential challenges in efficiently utilizing shareholder equity to generate profits over the period.

Overall, Pinnacle West Capital Corp.'s ROE has shown fluctuations but has remained generally within a relatively stable range between 6.80% and 10.12% over the past eight quarters. Continued monitoring of the company's performance indicators and operational efficiency will be essential to understand the factors contributing to these changes in ROE.