Debt-to-Equity Ratio
Higher than 64% of Utilities sector peers
Updated 124h ago
Sector Performance
64th percentilePNW
1.56x
Sector Median
1.47x
Sector Avg
1.76x
Deep Analysis
Pinnacle West’s debt-to-equity ratio of 1.56x means the company uses $1.56 of debt for every $1 of shareholder equity, indicating how much leverage it carries.
This is slightly above the utilities sector median of 1.47x, placing the firm in the 64th percentile of its peers, so its leverage is higher than most comparable companies. The year-over-year change is not available, but the ratio dropped 27.1% quarter-over-quarter from 2.14x, showing a recent sharp reduction in debt relative to equity. A high but rapidly falling debt-to-equity ratio may lower financial risk as the company deleverages, though the current level still exceeds the sector norm. This combination of above-median leverage paired with a declining trend supports the neutral overall verdict, as the improvement tempers some risk but has not yet brought the metric in line with peers.
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 1.56x compares to a Utilities sector median of 1.47x, placing it in the 64th percentile.
Who are PNW's closest peers by Debt-to-Equity Ratio?
The closest Utilities peers by Debt-to-Equity Ratio include: AWK (1.42x), NEP (1.52x), PEG (1.40x), PPL (1.35x), LNT (1.60x).
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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1.56x
Sector Median
1.47x
Sector Avg
1.76x
How PNW's Debt-to-Equity Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.