Pinnacle West Capital Corp (PNW)

Solvency ratios

	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
Debt-to-assets ratio	0.31	0.31	0.31	0.30	0.31	0.33	0.34	0.34	0.34	0.32	0.32	0.33	0.31	0.31	0.30	0.32	0.32	0.32	0.31	0.26
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
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
Financial leverage ratio	3.86	3.98	4.14	4.01	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

The solvency ratios of Pinnacle West Capital Corp indicate the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: This ratio has shown a slight increase over the past few quarters, indicating that the company's level of debt in relation to its total assets has been gradually rising. As of December 31, 2024, the ratio stands at 0.31, implying that 31% of the company's assets are financed through debt.

2. Debt-to-capital ratio: The trend in this ratio has been somewhat volatile, fluctuating between 0.52 and 0.56. As of December 31, 2024, the ratio sits at 0.54, suggesting that 54% of the company's capital is funded by debt.

3. Debt-to-equity ratio: Pinnacle West Capital Corp's debt-to-equity ratio has exhibited an increasing trend, indicating a higher reliance on debt financing compared to equity. As of December 31, 2024, the ratio is at 1.19, meaning that for every dollar of equity, the company has $1.19 in debt.

4. Financial leverage ratio: This ratio reflects the company's overall financial risk and shows an upward trajectory over the quarters, reaching 3.86 as of December 31, 2024. A higher financial leverage ratio suggests higher financial risk and implies that the company is more reliant on debt financing to support its operations.

In summary, Pinnacle West Capital Corp's solvency ratios demonstrate a varying degree of leverage and financial risk over the period, with an increasing trend in debt levels relative to assets, capital, and equity. It is crucial for the company to carefully manage its debt levels to maintain a sustainable financial position and ensure long-term stability.

Coverage ratios

	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
Interest coverage	2.45	2.56	2.63	2.45	2.49	2.51	2.38	2.70	2.86	3.02	3.13	3.42	3.45	3.38	3.52	3.45	3.44	3.41	3.22	2.99

The interest coverage ratio for Pinnacle West Capital Corp has exhibited fluctuations over the observed periods. Starting at 2.99 on March 31, 2020, the ratio improved gradually, reaching its peak at 3.52 on June 30, 2021. Following this peak, the interest coverage ratio experienced a decline, dropping to 2.38 on June 30, 2023. However, the ratio slightly recovered to 2.56 on September 30, 2024, before decreasing once again to 2.45 on December 31, 2024.

While the interest coverage ratio generally stayed above 2 during the analyzed periods, indicating that Pinnacle West Capital Corp generated enough operating income to cover its interest expenses, the decreasing trend towards the later periods may suggest the need for the company to monitor its ability to meet interest obligations in the future to ensure financial stability.