Pinnacle West Capital Corp (PNW)

Debt-to-capital 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 stockholders’ equity US$ in thousands 6,754,310 6,616,580 6,211,140 6,199,030 6,177,660 6,374,680 5,966,920 6,048,920 6,048,650 6,244,560 5,908,280 5,930,570 5,906,200 6,064,880 5,717,620 5,682,520 5,633,500 5,841,390 5,489,560 5,469,420
Debt-to-capital ratio 0.54 0.55 0.56 0.55 0.55 0.56 0.58 0.57 0.56 0.54 0.55 0.55 0.54 0.53 0.52 0.53 0.53 0.52 0.52 0.47

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 gradual increase over the years, starting at 0.47 as of March 31, 2020, and reaching 0.54 as of December 31, 2024. This indicates that the company has been relying more on debt financing relative to its total capital structure over time. The ratio fluctuated between 0.52 and 0.56 in the recent quarters, which suggests some variability in how the company is managing its debt levels. It is important for investors and stakeholders to monitor this trend as a higher debt-to-capital ratio can indicate higher financial risk and potential challenges in meeting debt obligations.