Pinnacle West Capital Corp (PNW)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,012,060 | 824,640 | 731,911 | 805,310 | 788,152 |
| Long-term debt | US$ in thousands | 8,058,650 | 7,540,620 | 7,741,290 | 6,913,740 | 6,314,270 |
| Total stockholders’ equity | US$ in thousands | 6,754,310 | 6,177,660 | 6,048,650 | 5,906,200 | 5,633,500 |
| Return on total capital | 6.83% | 6.01% | 5.31% | 6.28% | 6.60% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,012,060K ÷ ($8,058,650K + $6,754,310K)
= 6.83%
The return on total capital for Pinnacle West Capital Corp has shown a fluctuating trend over the past five years. It decreased from 6.60% as of December 31, 2020, to 6.28% by December 31, 2021, indicating a slight decline in the company's efficiency in generating returns from its total capital. Subsequently, there was a more notable decrease to 5.31% as of December 31, 2022. However, the return on total capital improved to 6.01% by the end of 2023 and further increased to 6.83% by December 31, 2024. This improvement in the return on total capital suggests that the company has been able to enhance its profitability and efficiency in utilizing its total capital in more recent years.
Peer comparison
Dec 31, 2024