Pinnacle West Capital Corp (PNW)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	7,540,620	7,741,290	6,913,740	6,314,270	4,832,560
Total assets	US$ in thousands	24,661,200	22,723,400	22,003,200	20,020,400	18,479,200
Debt-to-assets ratio		0.31	0.34	0.31	0.32	0.26

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $7,540,620K ÷ $24,661,200K
= 0.31

The debt-to-assets ratio of Pinnacle West Capital Corp. has been gradually increasing over the past five years, from 0.31 in 2019 to 0.37 in 2023. This indicates that the company's level of debt in relation to its total assets has been on the rise.

A higher debt-to-assets ratio may suggest that the company is relying more on debt financing, which can lead to increased financial risk due to higher interest payments and potential difficulties in meeting debt obligations. However, it is essential to consider the industry norms and the company's overall financial health before drawing conclusions solely based on this ratio.

In the case of Pinnacle West Capital Corp., while the increasing trend in the debt-to-assets ratio warrants attention, it would be beneficial to further analyze the company's debt structure, cash flow situation, and overall financial performance to gain a comprehensive understanding of its debt management strategy and financial stability.