Pinnacle West Capital Corp (PNW)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 824,640 | 787,011 | 688,321 | 728,136 | 731,911 | 745,177 | 756,977 | 812,268 | 805,310 | 786,141 | 811,776 | 795,264 | 788,152 | 769,301 | 717,583 | 652,298 | 671,960 | 726,847 | 756,864 | 802,437 |
| Long-term debt | US$ in thousands | 7,540,620 | 8,164,370 | 8,164,320 | 7,916,550 | 7,741,290 | 7,344,200 | 7,241,300 | 7,226,620 | 6,913,740 | 6,763,150 | 6,315,930 | 6,465,040 | 6,314,270 | 6,316,420 | 5,922,160 | 4,833,320 | 4,832,560 | 4,985,000 | 4,886,880 | 4,886,110 |
| 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 |
| Return on total capital | 6.01% | 5.41% | 4.87% | 5.21% | 5.31% | 5.48% | 5.76% | 6.17% | 6.28% | 6.13% | 6.75% | 6.55% | 6.60% | 6.33% | 6.29% | 6.33% | 6.55% | 6.90% | 7.48% | 7.92% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 eight quarters. The return on total capital ranged from a low of 4.66% in Q2 2023 to a high of 6.05% in Q1 2022. Despite the fluctuations, the return on total capital has generally remained within a relatively narrow range, indicating a consistent performance in generating returns relative to the total capital employed by the company. Overall, maintaining a return on total capital above the company's cost of capital is essential for creating value for investors and stakeholders. It would be beneficial to continue monitoring the trend in return on total capital to assess the company's efficiency in utilizing its capital resources effectively.
Peer comparison
Dec 31, 2023