Pinnacle West Capital Corp (PNW)

Debt-to-equity 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-equity ratio		1.19	1.22	1.30	1.22	1.22	1.28	1.37	1.31	1.28	1.18	1.23	1.22	1.17	1.12	1.10	1.14	1.12	1.08	1.08	0.88

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $8,058,650K ÷ $6,754,310K
= 1.19

The debt-to-equity ratio of Pinnacle West Capital Corp has shown an increasing trend over the past few years, indicating a higher level of debt compared to equity in the capital structure. As of December 31, 2024, the ratio stood at 1.19, meaning that for every dollar of equity, the company had $1.19 in debt.

This suggests that Pinnacle West Capital Corp relies more on debt financing to support its operations and growth initiatives, which can expose the company to higher financial risk, especially in times of economic downturns or unfavorable market conditions.

It is worth noting that monitoring the trend of the debt-to-equity ratio over time is essential for investors and analysts to assess the company's solvency, financial health, and overall risk profile. A consistently increasing ratio may raise concerns about the company's ability to service its debt obligations and maintain financial stability in the long run.