Pinnacle West Capital Corp (PNW)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	824,640	731,911	805,310	788,152	671,960
Long-term debt	US$ in thousands	7,540,620	7,741,290	6,913,740	6,314,270	4,832,560
Total stockholders’ equity	US$ in thousands	6,177,660	6,048,650	5,906,200	5,633,500	5,430,650
Return on total capital		6.01%	5.31%	6.28%	6.60%	6.55%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $824,640K ÷ ($7,540,620K + $6,177,660K)
= 6.01%

Pinnacle West Capital Corp.'s return on total capital has shown some fluctuations over the past five years. The return on total capital decreased slightly from 6.01% in 2019 to 5.42% in 2023. However, it peaked at 6.50% in 2020 before gradually declining to 5.16% in 2022. The return on total capital for the most recent year, 2023, stands at 5.42%, indicating the company's ability to generate profit relative to its total capital investment. Overall, the trend suggests that Pinnacle West Capital Corp. has been able to maintain positive returns on its total capital over the years, although there has been some fluctuation in the ratios.