Pinnacle West Capital (Pinnacle West Capital) Debt-to-EBITDA : 8.27 (As of Dec. 2023)

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Pinnacle West Capital Debt-to-EBITDA Definition

Debt-to-EBITDA measures a company's ability to pay off its debt.

Pinnacle West Capital's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1,552 Mil. Pinnacle West Capital's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $8,751 Mil. Pinnacle West Capital's annualized EBITDA for the quarter that ended in Dec. 2023 was $1,246 Mil. Pinnacle West Capital's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 8.27.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Pinnacle West Capital's Debt-to-EBITDA or its related term are showing as below:

PNW' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.65 Med: 3.74 Max: 5.79
Current: 5.79

During the past 13 years, the highest Debt-to-EBITDA Ratio of Pinnacle West Capital was 5.79. The lowest was 2.65. And the median was 3.74.

PNW's Debt-to-EBITDA is ranked worse than
73.26% of 460 companies
in the Utilities - Regulated industry
Industry Median: 3.535 vs PNW: 5.79

Pinnacle West Capital Debt-to-EBITDA Historical Data

The historical data trend for Pinnacle West Capital's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Pinnacle West Capital Debt-to-EBITDA Chart

Pinnacle West Capital Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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4.08

4.43

4.82

5.38

5.79

Pinnacle West Capital Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															9.05	8.54	6.07	3.30	8.27

Competitive Comparison of Pinnacle West Capital's Debt-to-EBITDA

For the Utilities - Regulated Electric subindustry, Pinnacle West Capital's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Pinnacle West Capital's Debt-to-EBITDA Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Pinnacle West Capital's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Pinnacle West Capital's Debt-to-EBITDA falls into.

Pinnacle West Capital Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Pinnacle West Capital's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(1552.383	+	8750.811)	/	1781.152
	=	5.78

Pinnacle West Capital's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(1552.383	+	8750.811)	/	1246.304
	=	8.27

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.

Pinnacle West Capital (NYSE:PNW) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Pinnacle West Capital Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Pinnacle West Capital's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

Pinnacle West Capital (Pinnacle West Capital) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Pinnacle West Capital Corp (NYSE:PNW) » Definitions » Debt-to-EBITDA

Comparable Companies

OGE IDA EVRG POR LNT PNM AGR MGEE HE GNE NEE SO DUK LSE:NG. AEP PCG D BOM:532555 EXC PEG

Traded in Other Exchanges

PWC:Germany

Address

400 North Fifth Street, P.O. Box 53999, Phoenix, AZ, USA, 85072-3999

Website

https://www.pinnaclewest.com

Pinnacle West is a holding company whose principal subsidiary is Arizona Public Service, a vertically integrated electric utility that serves 1.4 million customers across a 35,000-square-mile territory in central Arizona, including Phoenix. APS owns or leases more than 6 gigawatts of power generation capacity, including a 29% ownership stake in the largest nuclear plant in the U.S., Palo Verde. About half of the electricity that APS supplies to customers comes from clean energy sources, including nuclear.

Executives

Robert Edgar Smith	officer: EVP, GC, and CDO	400 NORTH FIFTH STREET, MAIL STATION 8602, PHOENIX AZ 85004
Paul J Mountain	officer: VP, Finance and Treasurer	400 N 5TH ST, PHOENIX AZ 85004
Jeffrey B. Guldner	director, officer: Chairman, President and CEO	400 N. FIFTH STREET, MS8695, PHOENIX AZ 85004
Donna M Easterly	other: SVP HR APS	400 NORTH FIFTH STREET, MAIL STATION 8602, PHOENIX AZ 85004
Elizabeth A Blankenship	officer: VP, Controller and CAO	400 NORTH FIFTH STREET, MAIL STATION 8602, PHOENIX AZ 85004
Andrew D Cooper	officer: SVP & CFO	400 NORTH 5TH STREET, MS 8602, PHOENIX AZ 85004
Jacob Tetlow	other: EVP, Ops, APS	400 N. FIFTH ST, MS 8602, PHOENIX AZ 85004
Theodore N Geisler	other: President, APS	400 NORTH FIFTH STREET, MAIL STATION 8602, PHOENIX AZ 85004
Kristine L Svinicki	director	30 IVAN ALLEN JR BLVD NW, ATLANTA GA 30308
Esparza Jose Luis Jr	other: SVP, Public Policy, APS	8360 S. DURANGO DR., LAS VEGAS NV 89113
Barbara D Lockwood	other: VP, Regulation, APS	400 NORTH FIFTH STREET, MAIL STATION 8602, PHOENIX AZ 85004
Adam C Heflin	other: EVP & CNO	1901 CHOUTEAU AVENUE, P. O. BOX 66149, MC-1370, ST. LOUIS MO 63166-6149
De La Melena Gonzalo A Jr	director	400 N 5TH ST, PHOENIX AZ 85004
James R Hatfield	officer: SVP & CFO, PNW & APS	P O BOX 321 MC/1110, OKLAHOMA CITY OK 73101
William H Spence	director	UNIVERSITY OFFICE PLAZA, 252 CHAPMAN RD., PO BOX 6066, NEWARK DE 19714-0066