Debt-to-Equity Ratio
Higher than 91% of Utilities sector peers
Updated 36h ago
Sector Performance
91th percentilePNW
2.14x
Sector Median
1.39x
Sector Avg
1.70x
Deep Analysis
Pinnacle West's debt-to-equity ratio of 2.14x means the company uses $2.14 of debt for every $1 of shareholder equity, indicating a relatively high reliance on borrowed funds to finance its operations.
This level is above the utilities sector median of 1.39x, placing the company in the 91st percentile among its sector peers, meaning it carries more debt than 91% of similar firms. The metric has been stable over the last eight quarters, with year-over-year and quarter-over-quarter changes both at +0.0%, showing no movement in either direction. The combination of a high debt level and a perfectly flat trend implies persistent financial leverage risk, but with no recent changes to suggest an escalating or easing burden. This profile generally aligns with the overall NEUTRAL verdict, as the elevated debt is typical for capital-intensive utilities, yet the stable trend does not signal an improving or deteriorating risk profile that would shift the assessment.
Frequently Asked Questions
What does the Debt-to-Equity Ratio tell investors about PNW?
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
How is the Debt-to-Equity Ratio calculated?
Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.
How does PNW's Debt-to-Equity Ratio compare to its sector?
PNW's Debt-to-Equity Ratio of 2.14x compares to a Utilities sector median of 1.39x, placing it in the 91th percentile.
Who are PNW's closest peers by Debt-to-Equity Ratio?
The closest Utilities peers by Debt-to-Equity Ratio include: PPL (1.35x), AWK (1.42x), LNT (1.60x), AEP (1.63x), FLNC (1.09x).
The Formula
Total Debt / Shareholders' Equity
Why It Matters
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
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2.14x
Sector Median
1.39x
Sector Avg
1.70x
How PNW's Debt-to-Equity Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.