Pinnacle West Capital Corp (PNW)
Financial leverage 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 | ||
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Total assets | US$ in thousands | 24,661,200 | 24,434,400 | 23,979,300 | 23,580,400 | 22,723,400 | 22,844,600 | 22,501,500 | 22,201,000 | 22,003,200 | 21,536,400 | 21,061,600 | 20,184,700 | 20,020,400 | 19,751,400 | 19,307,400 | 18,561,800 | 18,479,200 | 18,377,600 | 18,165,700 | 17,854,100 |
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 |
Financial leverage ratio | 3.99 | 3.83 | 4.02 | 3.90 | 3.76 | 3.66 | 3.81 | 3.74 | 3.73 | 3.55 | 3.68 | 3.55 | 3.55 | 3.38 | 3.52 | 3.39 | 3.40 | 3.31 | 3.47 | 3.40 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $24,661,200K ÷ $6,177,660K
= 3.99
The financial leverage ratio of Pinnacle West Capital Corp. has been relatively stable over the past eight quarters, fluctuating between 3.66 and 4.02. The ratio measures the extent to which the company relies on debt to finance its operations and investments, indicating the proportion of the company's assets that are funded by debt.
A higher leverage ratio suggests a greater reliance on debt financing, which can increase financial risk due to higher interest payments and the potential impact of economic downturns on debt repayment. In contrast, a lower ratio may indicate a more conservative capital structure with lower financial risk but potentially lower returns on equity.
Based on the data provided, Pinnacle West Capital Corp. has maintained a moderate level of financial leverage, balancing the benefits of debt financing with the associated risks. It is important for investors to monitor changes in the financial leverage ratio over time to assess the company's ability to meet its debt obligations and manage financial risks effectively.
Peer comparison
Dec 31, 2023