Pinnacle West Capital Corp (PNW)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	6,754,310	6,616,580	6,211,140	6,199,030	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
ROE		9.01%	9.30%	9.96%	8.42%	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%

December 31, 2024 calculation

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

Pinnacle West Capital Corp's return on equity (ROE) has shown some fluctuations over the past few years based on the provided data. The ROE values ranged from a low of 6.80% on June 30, 2023, to a high of 11.02% on June 30, 2020.

Generally, a higher ROE indicates that a company is generating more profit with each dollar of shareholders' equity, reflecting strong financial performance. In this case, the ROE figures for Pinnacle West Capital Corp mostly remain within a moderate range, suggesting a decent level of efficiency in utilizing its equity to generate profits.

However, the downward trend in ROE observed towards the end of the period, with values declining from 9.96% on June 30, 2024, to 9.01% on December 31, 2024, may raise concerns about the company's ability to maintain or improve its profitability levels.

Overall, while Pinnacle West Capital Corp has demonstrated a reasonable performance in terms of ROE over the analyzed period, monitoring the trend in ROE is crucial for assessing the company's ongoing financial health and its ability to provide returns to its shareholders.