Pinnacle West Capital Corp (PNW)

Debt-to-capital 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 stockholders’ equity US$ in thousands 6,754,310 6,177,660 6,048,650 5,906,200 5,633,500
Debt-to-capital ratio 0.54 0.55 0.56 0.54 0.53

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $8,058,650K ÷ ($8,058,650K + $6,754,310K)
= 0.54

The debt-to-capital ratio of Pinnacle West Capital Corp has shown a slight upward trend over the years, increasing from 0.53 at the end of December 2020 to 0.54 at the end of December 2021, further rising to 0.56 by the end of December 2022. However, the ratio then decreased to 0.55 at the end of December 2023 before dropping back to 0.54 at the end of December 2024. This indicates that the company has maintained a relatively stable level of debt in relation to its total capital structure, which consists of both debt and equity, during the period under review.