Pinnacle West Capital Corp (PNW)

Debt-to-equity 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-equity ratio		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	0.89	0.90	0.93	0.93

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $7,540,620K ÷ $6,177,660K
= 1.22

The debt-to-equity ratio of Pinnacle West Capital Corp. has shown a gradual increasing trend over the past eight quarters, with values fluctuating between 1.26 and 1.47. This indicates that the company has been relying more on debt financing compared to equity in recent quarters. While a higher debt-to-equity ratio can magnify returns on equity, it also increases financial risk as higher debt levels may lead to challenges in meeting debt obligations and interest payments.

Overall, the trend suggests that Pinnacle West Capital Corp. may be taking on more debt to fund its operations or growth initiatives. It is important for investors and stakeholders to closely monitor this ratio to assess the company's leverage and financial health.