Southern Company (SO)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 25,253,000 | 26,255,000 | 27,653,000 | 29,111,000 | 29,279,000 | 27,999,000 | 25,859,000 | 23,851,000 | 23,113,000 | 22,463,000 | 21,845,000 | 21,267,000 | 20,375,000 | 20,172,000 | 20,547,000 | 21,025,000 | 21,419,000 | 21,842,000 | 22,006,000 | 22,535,000 |
| Property, plant and equipment | US$ in thousands | 99,844,000 | 98,254,000 | 96,767,000 | 95,630,000 | 94,570,000 | 93,529,000 | 92,822,000 | 91,790,000 | 91,108,000 | 90,859,000 | 89,623,000 | 89,037,000 | 87,634,000 | 86,397,000 | 85,029,000 | 83,965,000 | 83,080,000 | 81,713,000 | 81,174,000 | 81,637,000 |
| Fixed asset turnover | 0.25 | 0.27 | 0.29 | 0.30 | 0.31 | 0.30 | 0.28 | 0.26 | 0.25 | 0.25 | 0.24 | 0.24 | 0.23 | 0.23 | 0.24 | 0.25 | 0.26 | 0.27 | 0.27 | 0.28 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $25,253,000K ÷ $99,844,000K
= 0.25
Southern Company's fixed asset turnover has been relatively stable over the past eight quarters, ranging from 0.25 to 0.31. This ratio measures the company's efficiency in generating sales revenue from its investment in fixed assets, such as property, plant, and equipment. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate revenue.
The trend in Southern Company's fixed asset turnover shows a slight fluctuation but remains within a relatively narrow range. This suggests that the company has been maintaining a consistent level of efficiency in utilizing its fixed assets to generate sales. However, the decreasing trend from Q1 2023 to Q4 2023 indicates a potential decrease in efficiency in generating revenue from fixed assets during that period.
Overall, Southern Company's fixed asset turnover ratio indicates that the company may need to further assess its asset utilization strategies to ensure optimal efficiency in generating revenue from its fixed assets. Monitoring this ratio over time can help identify any potential inefficiencies in the utilization of fixed assets and inform better strategic decision-making in the future.
Peer comparison
Dec 31, 2023