Pinnacle West Capital (Pinnacle West Capital) Gross Margin % : 33.71% (As of Dec. 2023)

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What is Pinnacle West Capital Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Pinnacle West Capital's Gross Profit for the three months ended in Dec. 2023 was $334 Mil. Pinnacle West Capital's Revenue for the three months ended in Dec. 2023 was $992 Mil. Therefore, Pinnacle West Capital's Gross Margin % for the quarter that ended in Dec. 2023 was 33.71%.

Warning Sign:

Pinnacle West Capital Corp gross margin has been in long-term decline. The average rate of decline per year is -2%.

The historical rank and industry rank for Pinnacle West Capital's Gross Margin % or its related term are showing as below:

PNW' s Gross Margin % Range Over the Past 10 Years
Min: 39.28 Med: 42.81 Max: 45.86
Current: 39.28

During the past 13 years, the highest Gross Margin % of Pinnacle West Capital was 45.86%. The lowest was 39.28%. And the median was 42.81%.

PNW's Gross Margin % is ranked better than
68.79% of 503 companies
in the Utilities - Regulated industry
Industry Median: 28.6 vs PNW: 39.28

Pinnacle West Capital had a gross margin of 33.71% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Pinnacle West Capital was -2.00% per year.

Pinnacle West Capital Gross Margin % Historical Data

The historical data trend for Pinnacle West Capital's Gross Margin % 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 Gross Margin % Chart

Pinnacle West Capital Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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42.85

45.57

44.62

39.50

39.28

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
Gross Margin %	Get a 7-Day Free Trial															27.97	31.79	38.93	47.21	33.71

Competitive Comparison of Pinnacle West Capital's Gross Margin %

For the Utilities - Regulated Electric subindustry, Pinnacle West Capital's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Pinnacle West Capital's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Pinnacle West Capital's Gross Margin % falls into.

Pinnacle West Capital Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Pinnacle West Capital's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	1844.6	/	4695.991
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4695.991 - 2851.382)	/	4695.991
	=	39.28 %

Pinnacle West Capital's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	334.3	/	991.574
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(991.574 - 657.267)	/	991.574
	=	33.71 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Pinnacle West Capital (NYSE:PNW) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Pinnacle West Capital had a gross margin of 33.71% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Pinnacle West Capital Gross Margin % Related Terms

Thank you for viewing the detailed overview of Pinnacle West Capital's Gross Margin % 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 » Gross Margin %

Comparable Companies

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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