Quick Ratio

The quick ratio measures a company's ability to pay short-term debts using its most liquid assets, such as cash and accounts receivable.

Pinnacle West's current ratio of 0.19x means it has $0.19 of liquid assets for every $1 of current liabilities, indicating a thin buffer. This is below the sector median of 0.39x, placing the company in the 10th percentile among utility peers—meaning 90% of competitors hold more liquidity. The year-over-year change is not available, but the quarter-over-quarter decline of -26.9% (from 0.26x to 0.19x) shows a sharp recent drop. The combination of an already low level and a falling trend points to elevated short-term liquidity risk, which could require reliance on external financing or inventory conversion to meet obligations. This weakness directly challenges a bullish stance, but it aligns with the overall NEUTRAL verdict, as other factors in the stock's profile likely offset this single metric.

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