Pinnacle West Capital Corp (PNW)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	6,177,660	6,048,650	5,906,200	5,633,500	5,430,650
Debt-to-capital ratio		0.55	0.56	0.54	0.53	0.47

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $7,540,620K ÷ ($7,540,620K + $6,177,660K)
= 0.55

The debt-to-capital ratio of Pinnacle West Capital Corp. has exhibited a generally increasing trend from 0.51 in 2019 to 0.59 in 2023. This suggests that the company has been relying more on debt to finance its operations and investments compared to its equity over the years. The gradual rise in the debt-to-capital ratio indicates an increasing proportion of debt in the company's capital structure, which can potentially lead to higher financial risk and interest expenses. It is essential for stakeholders to closely monitor this trend to assess the company's ability to manage its debt levels effectively and maintain a healthy capital structure.