Pinnacle West Capital Corp (PNW)

Debt-to-capital ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	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	4,832,560	4,985,000	4,886,880	4,886,110
Total stockholders’ equity	US$ in thousands	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	5,430,650	5,552,670	5,233,080	5,251,060
Debt-to-capital ratio		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	0.47	0.47	0.48	0.48

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 remained relatively stable over the past eight quarters, ranging from 0.56 to 0.60. This ratio indicates that, on average, approximately 56% to 60% of the company's capital structure is funded by debt, with the remainder funded by equity. The slight fluctuations in the ratio suggest that the company has been maintaining a balanced approach to financing its operations through a combination of debt and equity.

Overall, the trend in the debt-to-capital ratio does not show any alarming increases or decreases, signaling that Pinnacle West Capital Corp. has been managing its debt levels effectively relative to its capital base. However, a closer examination of the company's debt maturity profile and interest coverage ratios would provide a more comprehensive view of its financial health and ability to service its debt obligations in the long run.