Pinnacle West Capital Corp (PNW)

Debt-to-assets ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Long-term debt US$ in thousands 8,058,650 8,056,320 8,056,220 7,541,870 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
Total assets US$ in thousands 26,102,800 26,309,600 25,701,100 24,847,700 24,661,200 24,434,400 23,979,300 23,580,400 22,723,400 22,844,600 22,501,500 22,201,000 22,003,200 21,536,400 21,061,600 20,184,700 20,020,400 19,751,400 19,307,400 18,561,800
Debt-to-assets ratio 0.31 0.31 0.31 0.30 0.31 0.33 0.34 0.34 0.34 0.32 0.32 0.33 0.31 0.31 0.30 0.32 0.32 0.32 0.31 0.26

December 31, 2024 calculation

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

Pinnacle West Capital Corp's debt-to-assets ratio has shown some fluctuations over the past five years, ranging from 0.26 to 0.34. The ratio indicates the proportion of the company's total debt to its total assets. A lower debt-to-assets ratio typically suggests lower financial risk as it implies that the company has a lower level of debt in relation to its assets.

The trend observed in Pinnacle West Capital Corp's debt-to-assets ratio shows a slight increase in recent quarters, reaching 0.31 to 0.34 by the end of 2024. This upward trend indicates a potential increase in the company's debt relative to its assets during this period.

It is important for investors and stakeholders to closely monitor this ratio, as significant increases in the debt-to-assets ratio could signal a higher level of financial leverage and potentially increased financial risk for the company. However, it is essential to consider other financial metrics and factors in conjunction with the debt-to-assets ratio to gain a comprehensive understanding of Pinnacle West Capital Corp's overall financial health and risk profile.