Pinnacle West Capital Corp (PNW)

Debt-to-assets ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands 8,058,650 7,540,620 7,741,290 6,913,740 6,314,270
Total assets US$ in thousands 26,102,800 24,661,200 22,723,400 22,003,200 20,020,400
Debt-to-assets ratio 0.31 0.31 0.34 0.31 0.32

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $8,058,650K ÷ $26,102,800K
= 0.31

The debt-to-assets ratio of Pinnacle West Capital Corp has been relatively stable over the past five years, ranging between 0.31 and 0.34. This ratio indicates that, on average, around 31% to 34% of the company's assets are financed by debt, while the remaining portion is funded by equity. A decreasing trend in the debt-to-assets ratio over time may suggest that the company is gradually relying less on debt to finance its operations, which could potentially reduce its financial risk and improve its creditworthiness. However, a low and stable debt-to-assets ratio may also indicate that the company is not leveraging enough to maximize its growth potential. Overall, further analysis of the company's capital structure and financial health would be beneficial to gain a deeper understanding of its debt management strategies.