PNWNEUTRAL

PNW Debt-to-Equity Ratio Analysis

1.56x

Higher than 63% of Utilities sector peers

Updated 1233h ago·SEC filings & market data

Key Takeaway

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.

Sector Performance

63th percentile

PNW

1.56x

Sector Median

1.52x

Sector Avg

1.87x

Prior Period

2.14x(May 2026)

↑ Improving

📊

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 1.52x, placing it in the 63th percentile.

Who are PNW's closest peers by Debt-to-Equity Ratio?

The closest Utilities peers by Debt-to-Equity Ratio include: NEP (1.52x), LNT (1.60x), PEG (1.42x), AEP (1.63x), PPL (1.35x).

📚

Learn More About Debt-to-Equity Ratio

How to Spot a Debt Problem Before It Hits the Stock Price

Learn how to spot a debt problem in stocks using D/E, interest coverage, and net debt/EBITDA ratios. Real examples from META and MSFT, plus danger thresholds you need to know.

Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

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.